2010-CAFR-sec

CITY OF JACKSONVILLE, FLORIDA

COMPREHENSIVE ANNUALFINANCIAL REPORT

FOR THE FISCAL YEAR ENDEDSEPTEMBER 30, 2010

The City of Jacksonville delivers a diverse and expansive numberof services, including critical functions that keep our residents safeand our city running. The current economic climate has forced cityoperations at every level to make adjustments. But even in light ofthese tough decisions, city government is looking for ways to serve thepublic most effectively.

A city the size of Jacksonville must meet daily demands that are almost immeasurable. Last year,

Jacksonville Fire & Rescue answered more than 113,000 calls for assistance. Almost 75 percent of

those calls were for emergency medical attention. With one of the largest park systems of any city

in America, Jacksonville’s Public Works Department maintains 72,054 acres of parks. This is

in addition to overseeing the repair of 3,600 miles of roads and 7.4 million square feet of public

building space. Managing operations of this scope effectively requires reliable information.

To that end, the city is reaching out to the public in a variety of ways. During the budget planning

process, we hosted a series of workshops throughout Jacksonville that gave attendees the opportunity

to meet with city department leaders and learn about how city finances work. Most importantly, the

workshops allowed citizens to communicate their concerns to city decision makers and share their

priorities for the services the city provides.

Additionally, City Council held community meetings throughout Jacksonville where they, too,

gathered citizen input on city services and budget priorities. This focused and more interactive

approach resulted not only in more open communication between citizens and city leaders, but also

a better budget that reflects the needs and wants of this community.

By inviting everyone to play an informed and active role in the shaping of the budget, we were

able to garner an unprecedented amount of input from citizens. This key part of the process allowed

us to develop a well-rounded budget that safeguards our city’s future prosperity and delivers the

service priorities that Jacksonville residents trust and deserve.

CITY SERVICESCITY SERVICES

CCIITTYY OOFF JJAACCKKSSOONNVVIILLLLEE,, FFLLOORRIIDDAA

CCOOMMPPRREEHHEENNSSIIVVEE AANNNNUUAALL FFIINNAANNCCIIAALL RREEPPOORRTT FFOORR TTHHEE FFIISSCCAALL YYEEAARR EENNDDEEDD SSEEPPTTEEMMBBEERR 3300,, 22001100

PPRREEPPAARREEDD BBYY TTHHEE DDEEPPAARRTTMMEENNTT OOFF FFIINNAANNCCEE AACCCCOOUUNNTTIINNGG DDIIVVIISSIIOONN

City of Jacksonville, Florida

Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2010

TABLE OF CONTENTS INTRODUCTORY SECTION LETTER OF TRANSMITTAL ............................................................................................ i – xxiv CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE

IN FINANCIAL REPORTING............................................................................................ xxvi ORGANIZATIONAL CHART ................................................................................................ xxvii LISTING OF CITY OFFICERS, CONSTITUTIONAL OFFICEHOLDERS,

AND CITY COUNCIL OFFICIALS AND STAFF.................................................xxviii - xxix FINANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS .............................. 1 - 3 MANAGEMENT'S DISCUSSION AND ANALYSIS........................................................... 6 - 21 BASIC FINANCIAL STATEMENTS CITY-WIDE FINANCIAL STATEMENTS Statement of Net Assets .................................................................................................................24 Statement of Activities...................................................................................................................25 FUND FINANCIAL STATEMENTS Balance Sheet - Governmental Funds.................................................................................... 30 - 31 Reconciliation of the Governmental Funds Balance

Sheet to the Statement of Net Assets........................................................................................33

Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds ........................................................................................................ 34 - 35

FINANCIAL SECTION (CONTINUED) Reconciliation of the Statement of Revenue, Expenditures and Changes

in Fund Balances - Governmental Funds to the Statement of Activities .................................36 Statement of Net Assets - Proprietary Funds......................................................................... 38 - 39

Statement of Revenue, Expenses and Changes in Fund Net Assets -

Proprietary Funds .....................................................................................................................41 Statement of Cash Flows - Proprietary Funds ....................................................................... 42 - 45 Statement of Fiduciary Net Assets.................................................................................................48 Statement of Changes in Fiduciary Net Assets..............................................................................49 MAJOR COMPONENT UNITS Combining Statement of Net Assets – Component Units...................................................... 52 - 53 Combining Statement of Activities – Component Units……………….…………………… 54 - 55 NOTES TO THE FINANCIAL STATEMENTS ............................................................. 57 -147 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenue, Expenditures and Changes in Fund Balances -

Budget and Actual - General Fund.........................................................................................150 Notes to Required Supplemental Information ................................................................... 151 - 152 Schedule of Employer Contributions -

City of Jacksonville Retirement System ................................................................................153

Schedule of Employer Contributions - Police and Fire Retirement System ........................................................................................154

Schedule of Funding Progress - City of Jacksonville Retirement System ................................................................................155

Schedule of Funding Progress - Police and Fire Retirement System ........................................................................................156

Schedule of Funding Progress -

Employment Benefits Other than Pension (OPEB)................................................................157

FINANCIAL SECTION (CONTINUED) COMBINING INDIVIDUAL FUND STATEMENTS AND SCHEDULES GOVERNMENTAL FUNDS

Combining Balance Sheet - Nonmajor Governmental Funds ...................................... 162 - 168 Combining Statement of Revenue, Expenditures and

Changes in Fund Balances - Nonmajor Governmental Funds............................... 170 - 176

Budgetary Comparison Schedules - Nonmajor Governmental Funds ......................... 178 - 186 PROPRIETARY FUNDS

Combining Statement of Net Assets - Nonmajor Enterprise Funds............................... 188-189

Combining Statement of Revenue, Expenses and

Changes in Fund Net Assets - Nonmajor Enterprise Funds .................................. 190 - 191 Combining Statement of Cash Flows - Nonmajor Enterprise Funds ............................. 192-195

INTERNAL SERVICE FUNDS

Combining Statement of Net Assets - Internal Service Funds..................................... 198 - 199

Combining Statement of Revenue, Expenses and

Changes in Fund Net Assets - Internal Service Funds........................................... 200 - 201 Combining Statement of Cash Flows - Internal Service Funds ................................... 202 - 205

FIDUCIARY FUNDS

PENSION TRUST FUNDS

Combining Statement of Fiduciary Net Assets - Pension Trust Funds ...........................208

Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Funds ....................................................................................................209

AGENCY FUNDS

Combining Statement of Fiduciary Assets and Liabilities -

Agency Funds .................................................................................................... 210 - 211

Combining Statement of Changes in Assets and Liabilities Fiduciary Funds - All Agency Funds.............................................................................................. 212 - 214

FINANCIAL SECTION (CONTINUED) COMPONENT UNITS

Combining Statement of Net Assets – Nonmajor Component Units .....................................216

Combining Statement of Activities – Nonmajor Component Units.......................................217

Balance Sheet – Jacksonville Housing Finance Authority ....................................................218 Statement of Revenue, Expenditures and Changes in Fund Balances -

Jacksonville Housing Finance Authority ..........................................................................219 Balance Sheet – Jacksonville Economic Development Commission ....................................220 Statement of Revenue, Expenditures and Changes in Fund Balances -

Jacksonville Economic Development Commission ..........................................................221

SUPPLEMENTAL INFORMATION

Schedule of Long-Term Bonded Indebtedness ............................................................ 224 - 229

Schedule of Debt Service Requirements Compared to Cash in Sinking Fund Long-Term Obligations ................................................. 230 - 233

Schedule of Debt Service Requirements to Maturity -

Governmental Activities Revenue Bonds Supported by General Fund......................................................... 234 - 240


Governmental Activities Notes Payable Supported by General Fund ........................................................... 242 - 243


Governmental Activities Special Revenue Bonds and Notes Payable from Internal Service Operations..... 244 - 245


Governmental Activities Revenue Bonds Supported by Better Jacksonville Plan Revenues........................ 246 - 248


Governmental Activities Special Revenue Bonds Supported by Better Jacksonville Plan Revenues........... 250 - 251


Governmental Activities Notes Payable Supported by Better Jacksonville Plan Revenues....................................252

FINANCIAL SECTION (CONTINUED) Schedule of Debt Service Requirements to Maturity -

Payable from Enterprise Funds.............................................................................. 254 - 258

Schedule of Self Insurance - Workers Compensation ................................................. 260 - 261 Schedule of Self Insurance – General Liability ........................................................... 262 - 263

STATISTICAL SECTION (UNAUDITED)

Table of Contents.........................................................................................................................265 Financial Trends .................................................................................................................. 267-277

Net Assets by Components ......................................................................................... 268-269 Changes in Net Assets ................................................................................................ 270-273 Fund Balances, Governmental Funds .................................................................................274 Changes in Fund Balances, Governmental Funds ...................................................... 276-277

Revenue Capacity ................................................................................................................ 279-287

Assessed Value and Estimated Actual Value of Taxable Property ............................ 280-281 Direct and Overlapping Property Tax Rates.......................................................................282 Principal Property Taxpayers...................................................................................... 284-285 Property Tax Levies and Collections.......................................................................... 286-287

Debt Capacity ...................................................................................................................... 289-301

Ratios of Outstanding Debt by Type to Personal Income and Per Capita .................. 290-292 Ratios of General Bonded Debt Outstanding to Actual Taxable Value of Property and Per Capita..............................................................................................294 Direct and Overlapping Governmental Activities Debt .....................................................295 Legal Debt Margin Information..........................................................................................295 Pledged Revenue Coverage ........................................................................................ 296-301

Demographic and Economic Information............................................................................ 303-305

Demographic and Economic Statistics ...............................................................................304 Principal Employers............................................................................................................305

Operating Information ......................................................................................................... 306-313

Full-time Equivalent City Government Employees by Function/Program ........................307 Operating Indicators by Function/Program ................................................................ 308-311 Capital Asset Statistics by Function/Program ............................................................ 312-313

(This page is intentionally left blank.)

INTRODUCTORY SECTION


LETTER OF TRANSMITTAL

March 30, 2011

Dear Citizens of Jacksonville:

It is a pleasure to present you with the City of Jacksonville’s Comprehensive Annual Financial Report for Fiscal Year 2009/2010.

This document details the City’s financial status and clearly reflects our commitment to the highest standards of financial management, accountability and efficiency. You may be assured that we will continue to seek ways to improve customer service and to be the best possible stewards of taxpayer dollars.

I hope this guide is helpful to you, and I look forward to our continued work together to help make Jacksonville the best place in America to live, work and raise a family.

Sincerely, John Peyton Mayor


v

March 30, 2011 The Honorable Mayor John Peyton Members of the City Council Citizens of the City of Jacksonville INTRODUCTION The Comprehensive Annual Financial Report (CAFR) of the City of Jacksonville, Florida (the City) for the fiscal year ended September 30, 2010 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of its presentation, including all disclosures, rests with the City. Management believes the data, as presented, is accurate in all material respects and is presented in a manner designed to set forth the financial position and the results of operations of the City on a government-wide and fund basis. Disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. The City, founded in 1832 and consolidated with Duval County in 1968, has an estimated City/County population of 901,300 living within a 840.1 square mile area. Within Duval County there are four separate municipalities (the Cities of Jacksonville Beach, Neptune Beach and Atlantic Beach and the Town of Baldwin) which represent a population of 45,611 within 15.9 square miles. Jacksonville is the doorway to Florida (along the Atlantic coast) and the center of the five-county Jacksonville Metropolitan Statistical Area (MSA) which has an estimated population of 1,371,500. The City operates under a charter adopted October 1, 1968 and a Mayor/Council form of government. ECONOMIC CONDITIONS Each fiscal year provides the City an opportunity to identify, address and resolve issues facing our community and our citizens, both exclusively and as part of the MSA. The City’s major challenges are to provide the infrastructure and both the City and county services needed to maintain the quality of life that has attracted considerable growth to our community. History has proven that significant emphasis on support systems such as transportation, stormwater management, potable water, wastewater and electric capacity must be balanced carefully with quality of life amenities. These amenities include parks, recreation, sports, entertainment and cultural opportunities to maintain the natural beauty and attractiveness of a community. For the City, these natural attributes take shape as they relate to water (the St. Johns River and its tributaries, the Intracoastal Waterway and the Atlantic Ocean), a significant tree canopy and lush vegetation, which provide a unique environment for Jacksonville MSA residents.

Department of Finance – 117 W. Duval Street, Suite 300, Jacksonville, Florida 32202 (904) 630-1298 ww.coj.net

vi

Growth The Jacksonville MSA, which includes Duval, Baker, St. Johns, Clay and Nassau Counties, has experienced significant growth during the last decade. Measures of growth come in many forms. The following schedule is intended to demonstrate not only individual year growth, but also three, five and ten year annual average trends. The City and the MSA continue to demonstrate the benefits of being one of the identified Sun Belt growth centers. Jacksonville is seen as having an attractive tax environment as well as being a great place to live, work and raise a family.

2010 2009 2008 2007 2006 2005 2000 Last 3 Last 5 Last 10Population (in thousands)

City/County 901.3 905.0 905.0 898.0 891.2 859.3 791.5 0.1% 0.3% 1.4%MSA 1,371.5 1,367.7 1,369.1 1,295.9 1,272.7 1,224.7 1,118.5 1.9% 1.9% 2.3%

Assessed Value (in billions)City (only) 53.2 55.5 55.2 47.6 41.6 37.1 30.0 3.9% 7.0% 7.7%City/County 58.4 65.4 61.4 52.7 45.6 40.7 28.1 3.6% 7.0% 10.8%MSA 92.4 104.0 104.0 97.1 84.8 72.2 44.0 -1.6% 2.2% 11.0%

Dollar Value of Building Permits (in millions)City/County 1,037 828 2,141 1,948 2,380 3,564 3,625 N/A N/A N/AMSA 2,906 2,754 3,894 3,359 4,483 6,203 4,692 N/A N/A N/A

Building Permits (in thousands of Units)City/County 9.8 9.0 13.2 14.4 22.7 27.1 20.2 N/A N/A N/AMSA 32.8 28.9 35.0 40.0 58.0 69.3 42.7 N/A N/A N/A

Employment MSA (in thousands)Selected Segments:

Manufacturing & Construction 56.0 57.9 75.3 86.0 86.5 102.6 70.4 -11.6% -8.8% -2.0%Wholesale & Retail 99.0 99.9 138.3 142.8 139.1 127.6 139.7 -10.2% -7.2% -2.9%Service 328.6 327.1 304.7 315.0 303.2 260.0 236.5 1.4% 2.1% 3.9%Government 76.3 77.0 78.7 78.6 79.0 73.9 66.7 -1.0% -0.9% 1.4%Other 24.3 23.8 28.8 28.0 28.0 27.5 58.2 -4.4% -3.3% -5.8%Total 584.2 585.7 625.8 650.4 635.8 591.6 571.5 -3.4% -2.0% 0.2%

Chamber/Job RecruitmentNew Jobs(1) 3,268 2,145 3,393 7,235 10,166 10,572 16,928 N/A N/A N/ACorporate (2) 2,600 1,487 2,127 2,026 4,449 3,761 4,728 N/A N/A N/A

Port (JPA) ActivityCruise Passengers (in thousands) (3) 173.6 185.4 75.9 130.0 128.6 86.0 0.0 11.2% 8.7% N/ATons of Freight (in millions) 8.0 7.3 8.4 8.3 8.7 8.4 7.5 -1.2% -2.0% 0.7%

Airport (JAA) ActivityPassengers (in thousands) 5.6 5.6 6.0 6.3 5.9 5.7 5.2 -3.7% -1.3% 0.8%Tons of Airfreight (in millions) 73.5 72.1 81.6 83.2 86.8 85.1 68.9 -3.9% -3.8% 0.7%

(1) Total new jobs, both low and high wage(2) New jobs - high wage (3) In 2008, Cruise operations were out of service from April 2008 to September 2008.

Average % GrowthANNUAL AND THREE, FIVE AND TEN YEAR PERSPECTIVES

ACTUAL/ESTIMATES AND AVERAGE % GROWTHECONOMIC GROWTH

vii

Limitation on Flexibility-State View Florida is the fourth most populated state, with more than 18.8 million residents and, in recent history, is one of the fastest growing yet least taxed major states in the country. Local government revenue sources are restricted to property taxes and a limited array of permissive additional revenue opportunities. Because a personal income tax is constitutionally prohibited in Florida, state and local governments are continually seeking new and broader revenue opportunities to meet the service delivery and infrastructure requirements of our current and future population. In 1985, the State legislature passed significant growth management legislation, which requires state and local governments to develop five-year financeable capital infrastructure and minimum standard service level programs. The State, in an attempt to enhance the planning for the future, was attempting through the 1985 legislation to ensure that quality of life is maintained and that infrastructure and service delivery issues are reasonably addressed. The 1985 legislature failed to address new revenue flexibility that would have allowed the state and local governments to develop greater financial flexibility to implement these five-year planning programs. Subsequently, the State legislature has been preoccupied with other issues, principally the need for state involvement to improve the quality of education in Florida. Currently, budget balancing issues and citizen-initiated referendum (e.g., court system funding, K-12 class size reduction, etc.) are requiring the legislature’s primary attention and focus. As a result, enhanced revenue flexibility for local governments has not been adequately addressed. Local government’s need for transportation, green space, recreation and other infrastructure improvements normally not associated with a paid-for-services fee continues to place ever-tightening constraints on its ability to effectively plan for growth. Considerable attention needs to be placed on the broadening of the Home Rule Powers Act, in connection with the broadening of local government revenue flexibility, which would enable both individual City initiatives and, where appropriate, collective efforts on the part of local governments to address major regional infrastructure programs. Limitation on Flexibility- City/County View Facing the needs of a rapidly growing metropolitan community typically places a burden on the financial flexibility of any government. Broader revenue flexibility will be essential to maintaining Jacksonville’s traditionally strong financial condition and to address the challenges of growth. The City, the Florida League of Cities and the Florida Association of Counties are seeking new optional local flexibility in an effort to match new revenues with both operational and capital objectives. Given the diversity of size and local government agendas, cities and counties, if granted the latitude, might elect to reduce or eliminate property taxes in favor of sales or other optional choices and/or revamp or revisit various revenue/expenditure relationships to more equitably balance benefits and recipients. In 2000, the City initiated and the voters approved by referendum the $2.25 billion Better Jacksonville Plan (BJP). The BJP program proposed to address $1.5 billion in roadway system improvements and $750 million in vertical construction and other improvements. The program proposed to (a) use excess capacity in a ½ cent sales tax previously approved to eliminate tolls in Jacksonville and to provide a recurring funding source for mass transit (bus and other) to fund $750 million in road projects; (b) authorize a second ½ cent ($1.5 billion in projects) for road/transportation projects and vertical initiatives; (c) separate the funding into a unique and self contained accountability process and; (d) provide for citizen advisor committee oversight.

viii

Although the State has not addressed significant broadening of local government latitude, during the last 20 years (up through 2007) the growth of the State and the City/County and related impact on revenue, has allowed for an inadequate effort to meet the demands of growth. Framework

To understand the City, one must first understand the framework under which this government operates.

Under the 1968 consolidation, the City of Jacksonville and Duval County have eliminated the typical city/county conflict and is able to re-channel the related energy often misrouted on these dialogue(s) to a more productive use. The county/city conflict with the remaining four municipalities has largely been addressed in a series of relationship framing Interlocal Agreements.

The City operates under a strong Mayor/City Council form of government. The 19-member City Council is made up of 14 districts and five (5) at-large Council members. These 20 elected officials stand for election every four years (having no mid-term elections) and are subject to a two-term limitation, with approximately half of the group changing every four years

By its charter, the county continues to utilize the typical Florida County structured elected Constitutional Officers (Sheriff, Tax Collector, Property Appraiser, Supervisor of Elections and Clerk of the Court). The Sheriff operates the combined police/sheriff operation as well as the corrections/court bailiff activities. The Clerk of the Court operates the court/record filing activities, but unlike the majority of the other 67 counties, the Clerk does not have financial accounting/reporting responsibilities, which have been transferred to the Mayor.

A number of traditional City activities are operated by independent authorities and/or Commissions.

Jacksonville Aviation Authority (JAA) JEA (electric, water and wastewater utilities) Jacksonville Port Authority (JPA) Jacksonville Transportation Authority, (JTA) (which also operates the mass transit system) Water Sewer Expansion Authority (WSEA) Jacksonville Children’s Commission Jacksonville Economic Development Commission (which also operates the City/county CRA districts) Jacksonville Public Library

Each of the Authority/Commission is subject to annual budget submission to/approval by the City Council

ix

CHALLENGES/CONCERNS As the City addresses the various demands of growth/changes, it is equally important that it identify the challenges the community will face over the next three to five years. Turbulent Financial Times The last several years have placed significant challenges both on local government(s) in Florida and across the country. First, as an outgrowth of the 2006 Florida gubernatorial election, the new governor and the speaker of the Florida House set out to roll back property tax, the principal revenue of local government – City, County and (County) School Boards. During the 2007 legislative session, a) the State required a 3%,5%,7% or 9% millage rollback based on the level of property tax revenue growth for the period 2001 through 2006 and b) provided for a constitutional amendment (on the January 29, 2008 Presidential primary ballot) which would create:

• A second $25,000 homestead exemption/targeted at the 3rd $25,000 of value

(between $50,001 and $75,000) • A Tangible personal property exemption of $25,000 • Portability of the 1993 “Save Our Homes” advantages when selling and buying a home • A 10% taxable value growth limitation on non-homestead properties, beginning in 2009-10

The City argued that based on a 1993 local “advisory” referendum, the millage had dropped from 11.31 mils in 1995 to 9.64 mils in 2007 and that the City of Jacksonville/County of Duval (the City) had not been guilty of abusing its taxpayers during this period of dramatic property value increases. Nevertheless, it became clear that the City would be caught up in the sweeping net of change likely arising out of both the statutory required rollback (in which the City fell into the 3% - least required rollback) and the constitutional amendment (which was passed by the required 60% approval rate state-wide, failed in Duval County at 47%). With his 2007-2008 budget, the mayor’s understanding of the statewide situation led the City to reassess its possible underutilized local revenue options. The Mayor proposed a phased implementation of three (3) new fees. Effective April 2008 A franchise fee at 3% (although available up to 6%) on electric, water and sewer utilities April 2008 A residential solid waste fee at $3.00 per month (increasing by $1.00 each October until it reaches $12.00) June 2008 A stormwater utility fee (based on impervious surface and an Equivalent Residential Unit (ERU) measurement – initially at $5.00 per ERU While these new fees provided only partial relief in 2007-2008, a full year’s benefit for 2008-2009 was $37.5, $11.3 and $29 million respectively.

x

Second, the 2007-2009 global economic downturn has resulted in significant revenue contraction on several of the City’s principal revenue sources. The largest impacts have been to the property tax, which represents 50% of the City’s General Fund revenue, and sales tax collections with its impact on the ½ cent sales tax, City revenue sharing and county revenue sharing (from the State) which represent an additional 15% of the General Fund. Separately, the two Better Jacksonville (Capital Bond related) Programs were further impacted by the 11.44% and 10.38% reduction in the ½ cent sales tax streams over the four year period.

Florida’s “Truth in Millage” statute requires a rollback rate calculation of the property tax millage annually. The rolled back rate is defined as the rate that will raise the same revenue received last year from the existing properties on the tax roll from a year ago. For the majority of the state, since implemented in the late 1970’s through 2008-2009, the rolledback rate has always been lower than the millage rate adopted in the previous year. For 2009-2010, 2010-2011 and probably 2011-2012, the rolledback rate has been, and will likely be higher than the millage rate of the previous year (or a “rollup”). For 2009-2010, the 8.4841 millage rate (which was held flat for 2008-2009 after the 3.0% adjustment in 2007-2008) rolled up to 9.2727 mils. While this adjustment produced no new revenue, it was initially seen and politically reacted to as a tax increase. The mayor proposed a millage rate of 9.5 but the City Council ultimately approved on the rollback rate of 9.2727 mils.

Budget and actual revenue derived from sales tax for 2007-2008, 2008-2009, 2009-2010 and clearly 2010-2011 have had to be adjusted in light of economic market challenges.

Sales Tax Related General Fund Revenues

(In millions)

Fiscal Original Actual Year Budget Received 2005-2006 $123.9 $126.3 2006-2007 131.0 123.0 2007-2008 133.1 113.3 2008-2009 122.7 102.2 2009-2010 109.8 99.4 2010-2011 105.2 N/A

During the same troubled period, the City has been able to address and manage its General Fund budgetary process in a manner to add to the City’s available reserves (both Operating and Emergency) by $ 47.8 million.

Fiscal Increase in Reserves Year (In millions)

2005-2006 $17.8 2006-2007 4.8 2007-2008 14.1

2008-2009 6.8 2009-2010 4.3

xi

Budgetary Challenges

Since September 11, 2001 Jacksonville, like most local governments, has seen an increased emphasis on assuring that the City’s Public Safety (Sheriff/Police and Fire/Rescue) operational requirements are met. The following schedule illustrates these changes: FY 2001 FY 2010 % Change Sheriff:

Staffing 2,674 3,354 25.4%

Budget (in millions) $193.4 $359.7 86.0% Fire Rescue

Staffing 1,076 1,323 23.0%

Budget (in millions) $ 86.5 $166.9 92.9% During the same period, the non-public safety operations (e.g. public works, parks and recreation, etc.) other than the Library system, have been reduced significantly. The Library system, which opened 2 new regional libraries, 16 new or remodeled branch libraries and the new 297,000 square foot Main Library (in 2005), represents the only nonpublic safety department to experience material growth. The following schedules reflect these changes.

FY 2001 FY 2010 % Change Library System

Staffing 204 347 70.1%

Budget (in millions) $14.8 $ 42.3 185.8%

Other non-public safety

Staffing 2,396 1,490 (37.8%)

Budget (in millions) $195.1 $223.9 14.8%

xii

2008-2009 Budget Development In December 2007, the mayor initiated a 150 member citizen commission The Jacksonville Journey to address the city’s violent crime problem. The commission produced a multi-faceted, multi-year phased strategy involving the City, the School Board (an independent elected body), the criminal justice system (a state-run operation) and the social service community. Upon receipt of the proposal, the Mayor’s Office needed to address the City’s appropriate role. The mayor’s 2008-2009 budget proposal included funding in five categories: 1) Law Enforcement and Deterrence, 2) Targeted Intervention and Rehabilitation, 3) Education, Truancy, Dropout and Literacy, 4) Neighborhood Safety and Stability, and 5) Positive Youth Development. • Law Enforcement and Deterrence included $10 million in funds to hire additional police

officers, corrections officers, emergency communications officers and civilians necessary to support police work. In addition, the proposal included $4 million in funds to provide funds for overtime to deploy existing officers until the new police officers could be deployed.

• Targeted Intervention and Rehabilitation included $1.5 million in funds for the establishment of

an ex-offender re-entry portal, training, employment and re-entry programs for ex-offenders. In addition, $800,000 was set aside for establish a Juvenile Assessment Center, expand funding for juvenile crime prevention and intervention programs and expanding the City’s summer jobs program for youth.

• Education, Truancy, Dropout and Literacy efforts received $4 million for out of school

suspension centers, an expansion of early literacy programs and the establishment of college scholarships.

• Neighborhood Safety and Stability programs received $9.8 million to eliminate crime havens,

provide neighborhood job opportunities and to repair City assets in order to provide additional after-school and summer programs for youth.

• Positive Youth Development initiatives included $4.6 million in funds for an expansion of the

City’s Team Up Program for after school programs for middle and elementary school students, supervised after school recreation leagues for youths and provide for an additional two weeks of summer camp to cover more of the students’ summer break period.

2009-2010 Budget Development The budgetary process faced several significant challenges:

• The City’s first drop in property value in twenty-seven (27) years, and the issues related to a rollback/rollup

• Significant reductions in sales tax related revenues (both General Fund and BJP). • Material increases in pension contribution, related to the October 1, 2008 actuarial report and

the material investment losses during the 2007-2008 fiscal year • Phase II implementation cost for the Journey initiative • Need to negotiate with all of the City’s thirteen (13) bargaining units, effective October 1,

2009 The mayor proposed a zero salary increase across the board and the City Council adjusted the final budget to anticipate a 3.0% cut in salary plus other cuts in salary related costs.

xiii

In order to negotiate in good faith with the bargaining units, the City created a non-departmental negative contingency of $20.7 million with a counter-balancing $9.5 million contingency, leaving a potential for a negative $11.2 million outcome, all other things being equal.

Recognizing the uncertainty over when, and if, the salary cuts anticipated in the 2009-2010 final budget might be implemented, the mayor imposed a hiring freeze and department heads and division chiefs were encouraged to minimize spending to impact the 2009-2010 operating results and to assist in the 2010-2011 budget development. 2010-2011 Budget Development In anticipation of another difficult budget process, the mayor:

• In the second quarter, introduced a fee proposed to eliminate the General Fund subsidy of residential solid waste, moving the monthly fee from $5.00 to $12.65, effective October 1, 2010

• proposed a second year of levying the rolled-back rate (or a revenue neutral millage rate adjustment) which effectively moved the millage rate from 9.2727 to 10.1193 (rollup)

• continued pursuit of a salary cut across the board to be implemented 10-01-10, if not before, and

• identified the need to cut an additional $20 million to balance the 2010-2011 budget.

In September and October, 2010, five bargaining units representing 4,427 employees (approximately 59%) entering into three-year agreements at 0%, - 2.0% and 0% for fiscal years 2009-2010, 2010-2011 and 2011-2012 respectively. Additionally, these agreements provided for a) 5% employee participation in their own healthcare cost and b) pension benefit reductions for new employees, proposed by the administration for General Employee bargaining units. The Firefighters bargaining units additionally agreed to possible new employee benefit reduction which might be negotiated between the City and the Police and Firefighters Pension Plan (a separate component unit). While these changes did not help with the 2009-2010 budget, they were integral to balancing the 2010-2011 budget. Better Jacksonville Program As of October 1, 2008, the City had active capital projects anticipating future borrowing of $300 million, a serious negative trend on each of the two pledged revenues (both the Transportation and Infrastructure Programs) and a change of status on the bond ratings from stable to negative outlook. The rating (Aa3, AA-, AA), the long term need to maintain the Aa/AA category status and the related market access concerns in all market circumstances, caused the City to consider alternatives to meeting its capital program needs. Based on an assumption of three $100 million borrowing(s) over three years, a strategy was developed and implemented to substitute a General Fund covenant pledge while anticipating use of a junior lien infrastructure ½ cent sales tax revenue to pay the debt service on the covenant bonds.

xiv

Pension Benefit Reform/Labor Relations Related to the October 1, 2008 actuarial reports, analysis of projected future required contributions and a review of the ten year history of required employer contribution, the mayor initiated a review of the sustainability of the current pension benefit package. The concern over benefit levels correlated inversely to the funded status of the 3 pension plans:

Employer Contribution (as a percentage of pay)

FY 2009 FY 2010

Police & Fire 32.11% 49.60%

Corrections 17.16% 31.78% General Employee 10.43% 13.50% Historically, while the Florida Constitution grants both management and labor a right to negotiate pension benefits, the City has addressed benefit changes off-cycle or separate from the bargaining process. For the contract term starting October 1, 2009, the mayor had proposed reduced benefits for new employees hired after a date (to be determined). If successful, the resulting benefit package is still expected to be reasonable, fair and competitive in the northeast Florida marketplace and result in future contribution savings (over a 35 year period). A significant portion of these future savings were to come from the Police and Firefighters Pension Plan (originally estimated at $1.27 billion). An interlocal agreement had been entered into in 2000 which suggest that these benefits were untouchable through 2030. The radical increase in employer contribution (from $19.1 million in 2000-2001 to $87.5 million in 2009-2010 as well as those projects into the future led the mayor to call for the City to revisit/readdress the benefit package, at a minimum, for new employees. Over the ensuing 18-month period, discussions have been ongoing with the original proposal and addition/alternative option being discussed.

State and Federal Imposed Mandates During the 1980’s the State, like the federal government, elected to solve problems by imposing mandates on local government. The use of mandates effectively allows legislators to report that they have addressed and solved an issue, but relieves them of the often-unpopular obligation to finance or provide new revenue sources for the mandate. Local governments, who often support the resolution of the problem, have found it increasingly difficult to implement mandates without broadened revenue flexibility or without negatively affecting operating and capital agendas.

On November 6, 1990, the voters of Florida passed an amendment to the state constitution to limit the legislature’s ability to pass unfunded mandate that impose burdens upon local governments. A 2/3 majority of both chambers is now necessary to approve an unfunded mandate.

xv

Capital Improvement Program (CIP) and Debt Affordability Model

The City annually approves a 5-year Capital Improvement Program (CIP) that anticipates a specific level of borrowing and is financially feasible. Concurrent with the submission of the five- year CIP, the City reviews it’s Debt Affordability Model which a) looks backward 5 years to compare history b) measures the City’s performance against self-imposed ratio targets and maximum/minimum limits c) compares the City to national Aa/AA category norms and d) projects the City’s performance within targets/limits for the next 5 years. Pollution Remediation and Ash Site Settlement During 2004-2005, the City was able to settle a long standing class action suit regarding land value diminution and personal injury that arose out of a Solid Waste practice prior to the early 1970’s of using Solid Waste produced incinerator ash and used it as a fill when mixed with soil in low lying areas. The City agreed to pay $25 million and to allow the plaintiffs to pursue the City’s then-insurance providers related thereto. In FY2009, the City issued variable debt from the Banking Fund and is amortizing the remaining $23.2 million over a twelve (12) year period. Related thereto, the City also negotiated (and finalized a settlement agreement in Fall 2007) with the U.S. Environmental Protection Agency (EPA) regarding clean-up which will involve removing 2 feet of soil around the homes and related park land, putting down a mesh and replacing the removed top cover with new soil in an area of 1,300 or more homes. The current estimate for remediation of the ash sites and other remediation of approximately $150.7 million is accrued as a liability at the end of 2010. $135.1 million funding has been identified in the 2011-2015 Capital Improvement Program (CIP), with another $15.6 million to be budgeted beyond that. Growth Management As previously discussed, the State adopted the Growth Management Planning Act which requires local governments to develop a five-year plan, to install infrastructure support systems needed for growth and to maintain the types and quality of services presently being provided. The alternatives are to (a) adjust the service delivery standard; or (b) implement a mandatory moratorium on the issuance of new building permits. Each community is allowed to establish and periodically revisit its infrastructure and service delivery standards. However, the concept of a financeable five-year plan for both capital and service delivery projects, which will not involve periodically diminished standards, may require additional (statutorily authorized) flexibility in local revenue options and a constructive atmosphere of state and local government cooperation/collective effort. New flexible revenue options will be essential in meeting the service and service delivery support systems needs of state and local government. Delays in providing for new revenue flexibility, in light of the strictly defined Growth Management Planning Act, could become a major inhibitor to growth projected for the state, MSA and City. More importantly, our ability to maintain the quality of life that we have traditionally enjoyed may be critically impaired. While cities and counties require the tools necessary to plan for and meet the challenges of growth, local officials are not asking the State to impose a new tax. Rather, they are asking state legislators to simply broaden local governments’ horizon by authorizing new permissive revenue options for discretionary use.

xvi

Transportation The Metroplan Jacksonville 2035 Long Range Transportation Plan Update (Needs Plan) has indicated that the 2011-2035 needs of Northeast Florida for an improved transportation network are projected to cost $12 billion (170 projects) to meet a 68% increase in vehicle miles traveled in the region. Regional projected revenues over this 25 year period are expected to fund approximately $5 billion (60 projects), leaving a gap of $7 billion (110 projects). Even with such expenditures, there are no guarantees that the quality of transportation and, thus, the quality of life, would not deteriorate further. MAJOR INITIATIVES/PROGRAMS: Mayor John Peyton’s Initiatives: Three Priorities Mayor John Peyton designated three focus areas as priorities for his administration. These are the areas that will most affect Jacksonville’s continued success as a city, as well as the taxpayers’ quality of life. 1) Increased Public Safety Amid growing concern for the safety of families and business owners in Jacksonville and an increasing crime rate, Mayor Peyton identified public safety as his number one priority. In 2010, he continued leadership of The Jacksonville Journey: Take a Step, a comprehensive, communitywide, anti-crime initiative that he initiated in December 2007. As a result of the mayor’s budget recommendations to the Jacksonville City Council, $43 million in funding was secured specifically for Journey programs in the last two years, representing a continuation of one of the largest public-safety investments in Jacksonville’s history. During its first year, the members of The Jacksonville Journey were charged with the task of developing a plan to end the trend of violent crime in Jacksonville. The roadmap they developed was the first step in a long-term process that will lead to a safer, more secure future for Jacksonville. The second and third years have focused on investing significant resources to prevention and intervention programs. To date, The Jacksonville Journey is the largest contribution to crime fighting in the history of this government. And although this initiative is still in the early stages, preliminary data indicates that it is working. Through Journey funding, the public school system has revised its approach to out-of-school suspensions and lowered the rate by 71 percent. That is a significant, systemic change that keeps kids in school and off the street. According to the Sheriff’s Office, Jacksonville experienced a 14 percent reduction in the murder rate in 2010, and remains on track to see similar reductions this calendar year as well. The Jacksonville Journey citizen oversight committee continues to ask the tough questions, hold programs accountable and recommend changes when needed. The Jacksonville Journey is a work in progress, and it is employing methods that are proven to dismantle the cradle-to-prison pipeline: education, law enforcement, intervention, neighborhood safety and youth development.

xvii

2) Protection of the St. Johns River The St. Johns River is a vital resource directly impacting the economy, culture, history and environment of Jacksonville and its surrounding areas, and as such, it is a natural resource that Mayor Peyton is fully committed to safeguarding. In 2010, the city continued its commitment to the goals as set forth in The River Accord, an agreement outlining $700 million in investments to be made by the city and its partners over a ten-year period. This year, The River Accord made great progress in addressing important river issues. New stormwater projects were initiated in three critical areas in Duval County, with three new projects in the McCoy’s Creek area. The projects are paid, in part, by the dedicated funding that comes from the stormwater fee and from legislative funds. These projects will ultimately improve stormwater management and contribute to improved water quality. The implementation of the City of Jacksonville’s Fertilizer Ordinance, begun in 2009, continued to make an impact in 2010. Homeowners and businesses are adapting their landscaping plans to comply with the Landscape Irrigation Ordinance that specifies irrigation on certain days and during designated time periods while making accommodations for new landscaping and irrigation system installation. In December 2009, the Secretary of the Department of Environmental Protection (DEP) adopted the Lower St. Johns River Tributaries Basin Management Action Plan (BMAP), which was developed in partnership with local stakeholders. BMAP implementation will reduce fecal coliform bacteria levels in 10 tributaries. In addition, another 15 tributaries will be improved by the implementation of a second BMAP that was adopted by DEP in fall 2010. In January 2010, DEP prepared the first annual report for the Lower St. Johns River Nutrient BMAP, which indicated that the Nutrient BMAP projects that have been completed by stakeholders through October 2009 have resulted in an estimated reduction of 134,288 kilograms/year (kg/yr) of total nitrogen (TN) and 37,403 kg/yr of total phosphorus (TP) in the freshwater section of the river, and 545,798 kg/yr of TN in the marine section. 3) Economic Growth Economic development has long been one of Mayor Peyton’s top goals, and he has placed an emphasis on creating jobs and working with the Jacksonville Regional Chamber of Commerce, the Jacksonville Economic Development Commission, the Jacksonville Port Authority and other organizations to recruit new members into Jacksonville’s business community. As a result, 2010 marked the culmination of several milestone developments in the area of economic growth. Since 2003, more than 81 companies have either relocated or expanded their operations in Jacksonville. With those expansions and others, more than 14,000 new jobs were created. The average wage for those employees is about $50,000, which is 17 percent above the national average. Jacksonville has built a reputation as one of the most business-friendly cities in America. According to Portfolio.com, Jacksonville was the 13th best place in the nation to launch a new business in 2010. Through continued legislation and cooperation with military leaders, the mayor actively supports Jacksonville’s sizeable military presence, one that contributes in excess of $8 billion to the local economy each year. He has worked continually with government and military administrators to promote the full utilization of Naval Station Mayport and to gain the funding necessary to support it as a nuclear-capable port. The Navy has committed to make Naval Station Mayport the permanent homeport for a nuclear-powered aircraft carrier. This partnership equates to an additional 3,200 personnel and $460 million in infrastructure improvements for the base.

xviii

In the wake of national economic instability, Mayor Peyton continues to work diligently toward economic development, including job creation for the citizens of Jacksonville. In a period when many municipalities are preparing themselves for economic survival, Jacksonville has positioned itself for growth. CAPITAL PROJECTS Better Jacksonville Plan - Update

As previously indicated, the City’s $2.25 billion Better Jacksonville Plan (BJP) was approved by the voters and budgeted in 2000. The following schedule reflects some of the major projects:

Vertical Projects (in millions) Adjusted Budget

All Prior Years

Expense

Current Year

Expense

All Years

Expense

Remaining Budget Balance

Arena 129.3 128.0 0.0 128.0 1.3Baseball Stadium 33.8 33.8 0.0 33.8 0.0Equestrian Center 14.9 14.9 0.0 14.9 0.0New Main Library 93.0 92.3 0.0 92.3 0.7Other Library Projects 56.2 55.3 0.0 55.3 0.9Court house 210.1 100.4 31.8 132.2 77.9Septic Tank Removal 75.0 72.8 0.0 72.8 2.2Parks & Recreation Projects 101.3 89.2 3.7 92.9 8.4Economic Development 30.1 23.2 0.3 23.5 6.6 743.7 609.9 35.8 645.7 98.0 Expenditures

Transportation Projects (in millions) Adjusted Budget

All Prior Years

Expense

Current Year

Expense

All Years

Expense

Remaining Budget Balance

Beach Blvd Intracoastal Bridge 78.0 66.3 7.4 73.7 4.3

Kernan Blvd Improvements 92.0 70.1

(6.6) 63.5 28.5 Brannan Field-Chaffee Rd 77.7 39.5 3.2 42.7 35.0 Heckscher @ 9A Improvements 48.0 11.5 1.8 13.3 34.8 Argyle Forest Blvd Improvements 39.0 30.3 0.0 30.3 8.7 East-West Industrial Corridor 26.2 25.6 0.1 25.7 0.5 Cecil Field Roads and Drainage 25.0 23.9 0.0 23.9 1.1 St. Augustine Road 26.1 25.3 0.5 25.8 0.3 Shindler Road Improvements 22.4 4.4 0.1 4.5 17.9 Broward Rd Improvements 20.3 7.2 4.5 11.7 8.6

County-wide Road Resurfacing

132.2 123.4 7.3 130.7 1.5 Drainage System Improvements 98.7 91.4 0.8 92.2 6.5 Intersection & Bridge Improvements 23.9 23.7 0.1 23.8 0.1 Sidewalks and Bike Lanes-Countywide 20.0 20.0

(0.1) 19.9 0.1

Other Road Improvement Projects

427.2 287.7 51.7 339.4 87.8

Other JTA Transportation Projects

349.8 344.6 2.1 346.7 3.0

1,506.5

1,194.9 72.9

1,267.8 238.7

xix

BUSINESS ACTIVITIES

In addition to the Major Business Unit (Solid Waste) the following schedule reflects the level of activities, operations and debt service picture for the City’s cultural and entertainment facilities.

VeteransEverBank Memorial Baseball Performing Convention Equestrian

Field Arena Stadium Arts Center Center

Seating capacity 75,000 15,000 10,000 4,000 4,000 4,000Number of events 177 100 94 291 199 70Attendees 807,131 477,797 600,085 275,836 158,709 22,422

Revenues Rent 4,129,775 1,460,377 124,962 552,084 637,344 82,750 Concessions 859,975 1,502,173 28,410 177,047 296,450 11,907 Event related reimbursement 3,719,338 4,797,487 425,878 1,759,608 794,644 203,077 Other 839,656 800,706 78,005 (84,719) 35,033 6,091

Operating Total Revenue 9,548,744 8,560,743 657,255 2,404,020 1,763,471 303,825

Expenses Event related 3,271,388 2,765,370 175,851 1,130,198 427,070 35,718 Operating (excluding depreciations) 8,433,940 5,236,391 1,158,974 2,261,372 2,738,715 940,060

Operating Total Expenses 11,705,328 8,001,761 1,334,825 3,391,570 3,165,785 975,778

Operating Subsidy/Uses of Net AssetsArena 79,362 (159,362) 80,000 0Convention Center 783,596 0 486,882 936,613 (2,849,018) 641,927Net Assets 262,922 0 110,688 50,937 28,734 0

1,125,880 (159,362) 677,570 987,550 (2,820,284) 641,927

Net Operating Surplus/Deficits (1,030,704) 399,620 0 0 (4,222,598) (30,026)

Net General FundOperating Subsidy 1,030,704 0 0 0 0 30,026

Debt Service (D/S) Expense (P&I) 13,498,229 8,125,105 2,146,768 51,879 15,581 131,531Revenues Tourist Development Tax 4,560,688 0 0 0 0 0 Tourist Development Tax - Convention * 0 0 0 0 4,238,179 0 Better Jacksonville Plan 8,125,105 2,146,768 0 0 0 State Sales Tax Recapture 2,166,671 0 0 0 0 0

Total Revenue 6,727,359 8,125,105 2,146,768 0 4,238,179 0

D/S SubsidyGeneral Fund 6,770,870 0 0 51,879 0 131,531

Operating and Debt Service subsidy 7,801,574 0 0 51,879 0 161,557

Total subsidy 8,015,010

*Excess Tourist Development, attributed to the Convention Center, can be used for debt service and operation support

The Non-Major funds are combined with other enterprise funds in the Fund Statement and shown in detail in theCombining Statement - Enterprise Fund activities.

MAJOR NON-MAJOR

xx

OTHER FINANCIAL INFORMATION: Debt Administration The City’s sound financial condition is evidenced by the continuation of its long-held high-grade bond ratings on indebtedness from the major credit rating services. Moody’s (1) S&P Fitch (2) General Government Issuer Credit Rating (IRC) Aa1 AA AA+ Excise Tax Revenue Bonds Aa2 A+ AA+ Local Government Half-cent Sales Tax Bonds Aa2 AA- AA+ Guaranteed Entitlement Revenue Bonds A1 A AA Capital Improvement Revenue Bonds Aa3 n/a AA Capital Projects Revenue Bonds Aa3 n/a AA- Special Revenue Bonds Aa2 AA- AA Special Program Better Jacksonville Plan Sales Tax Bonds Aa2 AA- AA- Transportation Bonds Aa2 AA- AA

(1) On April 23, 2010, Moody’s universally recalibrated their U.S. Municipal Ratings Scale (2) On May 3, 2010, Fitch universally recalibrated their U.S. Municipal Ratings Scale

Component Units JEA Electric Aa2 AA- AA- Water & Sewer Aa2 AA- AA St. John’s River Power Park (SJRPP) Aa2 AA- AA- Bulk Power Aa2 AA- AA- JAA A2 A- A JPA A2 n/a A

xxi

Investment Performance (Both Active and Major Pension Programs) The following schedule is designed to provide investment performance information for the City’s Active Portfolio (bond only) and the City Retirement Systems (covering both General employees and Corrections Officers) and the Police and Firefighter Pension Plan.

FY 2010

FY 2009

FY 2008

FY 2007

FY 2006

3 - Year Average

5 - Year Average

Operating Fund ( All Fixed Income) * 8.14 11.72 1.33 5.04 4.05 6.97 6.00Policy Benchmark (Weighted Avg Benchmark)** 4.81 6.74 4.40 NA NA 5.29 NA Core Plus 12.50 16.57 -2.66 NA NA 8.48 NA Limited Duration 4.23 9.14 3.69 NA NA 5.66 NA Extended Cash 1.55 3.91 2.37 NA NA 2.61 NA

General Employee Pension Fund ( Diversified ) 11.54 0.33 -15.35 14.38 8.38 -1.79 3.27Policy Benchmark (Weighted Avg Benchmark)** 8.32 -1.31 -13.10 14.25 10.15 -2.42 3.17 Domestic Equity Composite 12.53 -7.41 -21.30 14.98 7.63 -6.40 0.29 Total Int'l Equity 11.16 -3.75 -27.85 23.69 19.40 -8.27 2.66 Total Fixed Income 12.21 17.00 -4.24 5.33 4.08 7.93 6.63 Total Real Estate 11.64 -26.78 -3.84 17.75 NA -7.71 NA

Police and Fire Pension Fund ( Diversified ) 9.33 -1.08 -12.55 15.30 8.50 -1.81 3.45Policy Benchmark (Weighted Avg Benchmark)** 7.94 -2.98 -13.09 13.60 9.20 -3.12 2.45 Domestic Equity Composite 10.75 -5.33 -19.73 19.10 8.50 -5.59 1.69 Total Int'l Equity 7.42 4.14 -29.14 24.70 19.30 -7.45 3.31 Total Fixed Income 7.54 11.75 2.20 5.20 3.40 7.09 5.99 Total Real Estate 8.50 -29.39 6.85 18.30 NA -6.26 NA

Indicies Russell 3000 Composite 10.96 -6.42 -21.54 16.55 10.21 -6.60 0.92 MSCI EAFE Index 3.71 3.80 -30.13 25.38 19.65 -9.06 2.45 NCREIF Property Index 5.84 -22.09 5.27 17.31 17.62 -4.61 3.67 Barclays Capital U.S. Aggregate Bond Index 8.16 10.56 3.65 5.14 3.67 7.42 6.20 BofA ML U.S. Corp & Gov 1-3 Yrs 3.26 5.89 4.48 5.68 3.89 4.54 4.64 BofA ML U.S. Treasury Notes 0-1 Year 0.39 1.35 3.71 5.38 4.36 1.81 3.02 Citigroup Treasury Bill-3 Month 0.12 0.39 2.55 5.01 4.41 1.01 2.48

NA = Specific consolidation / strategy did not exis t at that time*excludes depository accounts

Barclays Capital Aggregate BondBofA ML 1-3 yr Corp/Govt BondBofA ML 0-1 yr Treasury BondCitigroup 3-month Treasury BillRussell 3000 StockMSCI EAFE StockNCREIF Property

INVESTMENT PORTFOLIO PERFORMANCEOctober 1, 2009 to September 30, 2010

(Reported in Percentage and Gross of Investment Management Fees)

20%

40%

0%40%

0%0%

0%

Benchmarks for the General Employee and Police and Fire Pension funds are calculated by Summit Strategies while the Operating Portfolio Policy Benchmark is prepared by staff using BNY Mellon custody reporting data.

Operating Fund General Employee25%0%0%0%

35%20% 20%

15%

**Benchmark Composition:

25%Police and Fire

0%0%

40%15%5%

xxii

Reference to Management, Discussion, and Analysis (MD&A)

GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Jacksonville’s MD&A can be found immediately following the report of the independent certified public accountants.

GENERAL INFORMATION

Accounting The City's accounting system is organized and operated on a fund basis. A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts. The types of funds to be used are determined by generally accepted governmental accounting principles, and the number of individual funds established is determined by sound financial administration and statutory and ordinance requirements of the Council.

Budgeting Detailed provisions regulating the City's budget, tax levies and appropriations are set in Florida Law in the City Charter and in the City's Ordinance Code. The mayor is required to submit a proposed budget to Council by the second Tuesday in July of each year. The mayor's Proposed Budget must comply with state and local legal requirements for a balanced financial plan of operation for the government’s upcoming fiscal year. The Mayor's Proposed Budget identifies revenues and other financial resources which are anticipated to be available for appropriations, makes recommendations for appropriations, expenditures and uses of financial resources, and otherwise presents concise policy direction and guidance for the continuing financial operation of the City. Prior to the beginning of each new fiscal year, the Council adopts, by ordinance, a balanced budget which contains estimated revenues and other financing sources, appropriations, authorizations of full time positions and temporary employee hours, and any amendments to the Ordinance Code which relate to the annual budget.

Reporting Entity The financial reporting entity includes all funds of the primary government (Consolidated Government City of Jacksonville/Duval County), as well as all of its component units. Component units are legally separate organizations for which the City is financially accountable and, for financial statement purposes, are either blended with the activities of the City or discretely presented. The criteria used to determine whether an organization should be a part of the City of Jacksonville's reporting entity are outlined in note one (1).

Report Format The Comprehensive Annual Financial Report is presented in three sections: (1) the Introductory Section includes general information about the City and summarizes financial activity for the fiscal year; (2) the Financial Section includes the Independent Certified Public Accountants Report on the City’s Basic Financial Statements, Management’s Discussion and Analysis, the Basic Financial Statements, Notes to Financial Statements, Required Supplementary Information, and the Combining and Individual Fund Financial Statements and Schedules; and (3) the Statistical Section, containing un-audited financial and other data of an economic, financial and demographic nature for prior and current years. The Notes to Financial Statements, in the financial section, are necessary for an understanding of the information included in the statements. They include the summary of significant accounting policies and other necessary disclosures of matters relating to the financial position of the City.

xxiii

Independent Audit The Report fulfills the requirements set forth in the City Charter, Section 5.11; Chapter 166.241, Florida Statutes and Chapter 10.550 Rules of the Florida Auditor General, requiring publication of basic financial statements which have been audited by independent auditors. The independent auditor’s report is presented as the first component of the financial section of this report. The financial statements of certain component units were audited by other auditors as described in the McGladrey & Pullen, LLP audit opinion. Reporting Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Jacksonville for its comprehensive annual financial report for the fiscal year ended September 30, 2009. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for the preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such comprehensive annual financial reports must satisfy both accounting principles generally accepted in the United States and applicable legal requirements. A Certificate of Achievement is valid one year only. The City of Jacksonville has received this Certificate for thirty consecutive years (fiscal years 1980 through 2009). We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for their review.


ORGANIZATIONAL CHARTCITY OF JACKSONVILLE, FLORIDA

InformationTechnologiesDepartment

JacksonvilleEconomic De-

velopmentCommission

(JEDC)

FinanceDepartment

Fire & RescueDepartment

Central Opera-tions

Department

Recreation &CommunityServices De-

partment

Deputy CAO/Sustainable

Communities

Chief Administrative

Officer

Various Boards andCommissionsMAYOR

LEG

ISLA

TIV

E

CITY COUNCIL19 MEMBERS (14 ELECTED BY DISTRICTS; 5 AT LARGE)

S T A N D I N G C O M M I T T E E S

Various Boards Authori-ties, Councils & Commis-sions Appointed By City

Council

CONSTITUTIONAL OFFICERS

JUDICIAL

Chart Rev. 10/08 *** Appointed by the Governor

JUD

ICIA

L

TH

E V

OT

ER

S E

LE

CT

EX

EC

UT

IVE

GeneralCounsel

Public WorksDepartment

RulesRecreation and

CommunityDevelopment

Transportation,Energy

and Utilities

Public Healthand Safety

Land Use and

ZoningFinance

Auditor Council Secre-tary

PropertyAppraiser

Duval CountySchool Board

(7 Members elected by District)

Supervisor of

Elections

TaxCollectorSheriff

Circuit Court*(29 Judges)

CountyCourt*

(17 Judges)

Clerk ofCircuit Court*

StateAttorney*

PublicDefender*

MedicalExaminer***

xxviii

City of Jacksonville, Florida City Officers and Constitutional Officeholders John Peyton, Mayor City Officers Adam Hollingsworth .................................................................................. Chief of Staff Kerri Stewart.......................................................................Chief Administrative Officer Roslyn Mixon-Phillips. ............................................................Chief Community Officer Misty Skipper..................................................................... Director of Communications Pamela Markham ……………………………………………………...Inspector General Derek Igou ………………………………………Deputy Chief Administrative Officer Cindy Laquidara, Esq. ........................................................................... General Counsel G. Michael Miller, CPA, CGFO, CGFM, CIA……Chief Financial Officer & Dir. Finance Devin Reed, Esq. ................................................................Director, Central Operations Roslyn Mixon-Phillips.............................Director, Recreation and Community Services Daniel A. Kleman .................................................................... Director, Fire and Rescue Dr. Robert Harmon .............................................................. Public Health Administrator Kevin Holzendorf ………………. Director & Chief, Information Technology Department Joey Duncan ................................................................................ Director, Public Works Ebenezer Gujjarlapudi ..........................Director, Environmental Resource Management William Killingsworth ……………………………..Director, Planning and Development Wight Greger ………………………………………Director, Housing and Neighborhoods Kevin G. Stork, CGFM..................................................................................Comptroller Michael R. Givens, CPA ...................................................................................Treasurer Kent R. Olson, CGFO.............................................................................. .Budget Officer Constitutional Officeholders Jim Fuller .......................................................................................Clerk of Circuit Court Jim Overton ........................................................................................Property Appraiser John Rutherford . ................................................................................................... Sheriff Jerry Holland ...............................................................................Supervisor of Elections Mike Hogan ................................................................................................ Tax Collector

xxix

City of Jacksonville, Florida City Council Officials and Staff City Council President of Council .......................................................................John D. “Jack” Webb Vice President of Council ...................................................................... Stephen C. Joost

District 1 — Clay Yarborough District 8 — E. Denise Lee District 2 — William Bishop District 9 — Warren A. Jones District 3 — Richard Clark District 10 — Reginald L. Brown District 4 — Don Redman District 11 — Ray Holt District 5 — Art Shad District 12 — Daniel J. Davis District 6 — John D. “Jack” Webb District 13 — Dick Brown District 7 — Dr. Johnny Gaffney District 14 — Michael Corrigan

Group 1 At-Large — Ronnie Fussell Group 2 At-Large — John R. Crescimbeni Group 3 At-Large — Stephen C. Joost Group 4 At-Large — Kevin Hyde Group 5 At-Large — Glorious J. Johnson

Council Staff Kirk Sherman, CPA................................................................................ Council Auditor Cheryl Brown ........................................................................ Director/Council Secretary Kristi Sikes ...................................................................Chief of Administrative Services Dana Farris .........................................................................Chief of Legislative Services Jeff Clements ....................................................................................... Chief of Research


FINANCIAL SECTION


Independent Auditor’s Report

The Honorable Mayor and Members of the City CouncilCity of Jacksonville, Florida

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate discretely presented component units and remaining fund information of the City of Jacksonville, Florida (the “City”), as of and for the year ended September 30, 2010, which collectively comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City’s management. Our responsibility is to express opinions on these financial statements based on our audit.We did not audit the financial statements of the Downtown Vision, Inc., Jacksonville Airport Authority, Jacksonville Electric Authority, Water & Sewer Expansion Authority, and the Police and Fire Rescue Pension Plan Trust Fund, which collectively represent 74% and 68%, respectively, of the assets and revenues of the aggregate discretely presented component units and remaining fund information. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Downtown Vision, Inc., Jacksonville Airport Authority, Jacksonville Electric Authority, Water & Sewer Expansion Authority, and the Police and Fire Rescue Pension Plan Trust Fund, is based on the reports of the other auditors. The prior year summarized comparative information has been derived from the City’s 2009 financial statements which were audited by other auditors whose report thereon dated March 24, 2010 expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund and the aggregate discretely presented component units and remaining fund information.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinions.

In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate discretely presented component units and remaining fund information of the City as of September 30, 2010, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued, under separate cover, our report dated March 30, 2011 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.


The Management’s Discussion and Analysis, the schedule of revenue, expenditures and changes in fund balance –budget and actual – general fund, and the schedules of employer contributions and funding progress as listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We and the other auditors have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual fund statements and schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules have been subjected to the auditing procedures applied by us and the other auditors, in the audit of the basic financial statements and, in ouropinion, based on our audit and the reports of the other auditors, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied by us and the other auditors in the audit of the basic financial statements and, accordingly, we express no opinion on them.

Jacksonville, FloridaMarch 30, 2011


MANAGEMENT'S DISCUSSION AND ANALYSIS

MANAGEMENT’S DISCUSSION AND ANALYSIS The City of Jacksonville’s discussion and analysis is designed to provide an objective and easy to read overview of the City’s financial activities, with a focus on significant financial issues, as well as identify material deviations from the financial plan (the approved budget), identify changes in the City’s financial position (its ability to address the next and subsequent year challenges), and identify individual fund issues or concerns. The Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s activities, resulting changes and currently known facts. The information contained within this MD&A should be considered only a part of the City’s Comprehensive Annual Financial Report (CAFR). Financial Highlights

• Capital assets were $3.2 billion on September 30, 2010, resulting in a $261 million, 8.2% increase over last fiscal year.

• The City’s General Fund operations had total revenues of $976 million a 1.7% increase over fiscal year 2009.

• Although required employer a) pension contribution and b) healthcare cost went up by $40 million and $5.5 million respectively, governmental activity expense only went up by $4.7 million or ½ of 1%.

• Property Tax revenues experienced an $18.8 million, 3.8% increase as compared to a $3 million, 1% decrease in FY 2009. The $118 million increase in Capital Grants and Contributions was primarily a result of a group of City/County road projects constructed by the Jacksonville Transportation Authority (JTA), a component unit, being returned/contributed back to the City.

Additional information that explains these financial highlights may be found on pages 13, 16, and 17 of this MD&A. City Highlights

• Based on the economic downturn (2007-2009) and related property tax valuation reductions, the City was faced with the statutorily required Rollback (designed to produce the same revenue in the prior year) resulting in an equivalent millage Rollup for both 2009-2010 and 2010-2011:

Fiscal Year Property Valuation (in billions) Rollback Rate Approved Millage Rate*

2008-2009 $65,401,745 8.4841 2009-2010 $58,382,480 9.2727 9.2727 2010-2011 $54,287,101 10.1100 10.0353 * 1 mill is equal to 1/10th of 1.0% and the City/County combined constitutional cap is 20.0 mills

• The increase for 2009-2010 in property tax revenues was a function of a) new construction being excluded from the rollback calculation and b) a change in valuation between July 1 (used for budget purposes) and the final October 1 numbers.

• Mid-year, as part of an annual fee rate review and anticipating revenue concerns for FY 2010-2011, the Mayor proposed (and the City Council agreed) to eliminate the General Fund residential Solid Waste subsidy which resulted in a monthly residential Solid Waste increase from $5.00 to $12.45 and thereby erase the $21 million General Fund subsidy of the City’s Solid Waste enterprise operations.

• By October 31, 2010, the City had resolved extended union negotiations with 59.7 of its union employees, include the Firefighter’s units for a three year period (2009-2010, 2010-2011, and 2011-2012) covering a zero, minus 2.0% and zero salary increase, with the minus 2.0% to be effective as of October 1, 2010 as provided for in the respective 2010-2011 budget proposal.

-6-

OVERVIEW OF THE BASIC FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City of Jacksonville’s basic financial statements. As indicated in the following graphic (Figure A-1), the City’s basic financial statements are comprised of three components: 1) citywide basic financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains supplementary and statistical information in addition to the basic financial statements themselves.

Figure A-1

COMPONENTS OF THE ANNUAL FINANCIAL REPORT

Summary Detail

Management’s

Discussion and

Analysis (MD&A)

Basic Financial

Statements

Required Supplementary

Information (RSI)

Citywide Financial

Statements

Fund

Financial Statements

Notes to the

Financial Statements

-7-

Citywide Basic Financial Statements

The citywide basic financial statements are designed to provide readers with a broad overview of the City of Jacksonville’s finances, in a manner similar to a private-sector business. The focus of the Statement of Net Assets is designed to be similar to bottom line results for the City and its governmental and business-type activities. This statement combines and consolidates governmental funds current financial resources (short-term spendable resources) with capital assets and long term obligations. The Statement of Activities distinguishes functions of the City of Jacksonville that are principally supported by taxes and intergovernmental revenues (governmental activities such as; police, fire, public works, recreation, and general administration) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities such as: solid waste, sports complex, motor vehicle, public parking and ferry operations).

Component Units, which are other governmental units over which the City can exercise influence and/or may be obligated to provide financial subsidy, are presented as a separate column in the citywide statements. The City of Jacksonville’s component units are as follows: JEA, Jacksonville Transportation Authority, Jacksonville Aviation Authority, Jacksonville Port Authority, Water Sewer Expansion Authority, Jacksonville Housing Finance Authority, Downtown Vision, Inc. and Jacksonville Economic Development Commission. JEA, Jacksonville Transportation Authority, Jacksonville Aviation Authority, Jacksonville Port Authority and Downtown Vision, Inc. publish separately issued financial statements. For more information, see footnote 1.B. The focus of the statements is on the primary government and the presentation allows the user to address the relationship with the Component Units.

The two statements (Statement of Net Assets and Statement of Activities) demonstrate how the City’s net assets have changed. Increases or decreases in net assets are good indicators of whether the City’s financial health is improving or deteriorating over time. Other non-financial factors such as changes in the City’s property tax base are important considerations to assess the City’s overall financial condition.

Fund Financial Statements

A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. Traditional users of governmental financial statements will find the Fund Financial Statements presentation more familiar. The focus is on Major Funds, rather than fund types, which provides detailed information about the most significant funds. The City of Jacksonville, like other state and local governments, uses funds to ensure and demonstrate compliance with financial requirements imposed by law, bond covenants and local administrative and legislative actions. All of the City’s funds can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.

Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the citywide basic financial statements. However, unlike the citywide basic financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Since the focus of governmental funds is narrower than that of the citywide basic financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the citywide basic financial statements. This allows readers to better understand the long-term impact of the government’s near-term financing decisions.

-8-

Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Governmental fund information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Special Bonded Debt-Better Jacksonville Plan Obligations Fund, Bond Projects Fund, and Better Jacksonville Project Fund, all of which are considered to be major funds. Information from other non-major funds is combined into a single, aggregated presentation.

Proprietary Funds

Proprietary funds provide the same type of information as the business-type activities in the citywide basic financial statements, only in more detail. The proprietary fund financial statements can be found in the Fund Financial Statements section of this report. The City of Jacksonville maintains two major types of proprietary funds.

Enterprise funds are used to report the same functions presented as business-type activities in the citywide basic financial statements. The City uses enterprise funds to report separate information on operations such as solid waste, which is a major fund and sports complex activities, motor vehicle, ferry operations, and public parking, which are non-major funds. The internal service funds are used to account for activities that provide goods and services to the City’s other programs and activities. Since the internal service funds predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the citywide basic financial statements.

Fiduciary Funds

The City of Jacksonville is the trustee, or fiduciary, for trusts such as the City employee’s retirement plan. Because of a trust arrangement, these assets can be used only for the trust beneficiaries. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the City of Jacksonville’s fiduciary activities are reported in a separate statement of fiduciary net assets and a statement of changes in fiduciary net assets. These activities are excluded from the citywide basic financial statements because the assets cannot be used to support or finance the City’s programs or operations. The Fiduciary Funds Statement of Changes in Net Assets can be found in the Fund Financial Statement section of this report.

Notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the citywide and fund financial statements. The notes can be found as a part of the Basic Financial Statements section of this report.

-9-

Other Information This report additionally includes required supplementary information (RSI) containing budgetary comparisons with related notes and the progress of the City’s employee pension obligations. The combined statements in connection with non-major governmental and enterprise funds, internal service funds, fiduciary funds and nonmajor component units are presented following the required supplementary information. Additional statistical information is presented to give report users a better historical perspective and assist in assessing current financial status and trends of the governmental unit. Economic data is presented to allow a broader understanding of the economic and social environment in which the city government operates.

CITYWIDE FINANCIAL ANALYSIS Net assets may serve over time as a useful indicator of government’s financial position. As of September 30, 2010, the City of Jacksonville is able to report positive balances in overall net assets (See Table A-1).

2010 2009 2010 2009 2010 2009

Cash and Investments 832,174$ 684,962$ 79,393$ 113,252$ 911,567 $ 798,214Current and Other Assets 329,989 318,688 70,589 36,980 400,578 355,668 Capital Assets 2,745,099 2,480,672 433,798 436,791 3,178,897 2,917,463

Total assets 3,907,262 3,484,322 583,780 587,023 4,491,042 $ 4,071,345

Current Liabilities 252,485 247,168 37,221 32,675 289,706 279,843 Non-current Liabilities 2,795,609 2,523,338 396,061 409,092 3,191,670 2,932,430

Total liabilities 3,048,094 2,770,506 433,282 441,767 3,481,376 3,212,273 Net assets

Invested in capital assets, net of related debt 974,561 953,289 135,912 126,221 1,110,473 1,079,510 Restricted for:

State and Federal Grants 90,561 82,282 - - 90,561 82,282 Permanent Fund non-expendable 123 123 - - 123 123 Other par ticipant's equity 1,652 4,271 - - 1,652 4,271

Unrestricted (207,729) (326,149) 14,586 19,035 (193,143) (307,114) Total net assets (deficit) 859,168$ 713,816$ 150,498$ 145,256$ 1,009,666 $ 859,072

Total PrimaryGovernment

GovernmentalActivities Activities

Business Type

Table A-1Summary Statement of Net Assets

(In Thousands)as of September 30, 2010 and September 30, 2009

-10-

The negative unrestricted net assets in the governmental activities is primarily due to non-asset related debt issued for various capital projects that belong to other entities, but the debt is a liability of the City. Some of the debt was issued under the Better Jacksonville Plan (BJP), which has dedicated revenue sources for payment of the debt. See Table A-1. The City issued non-asset related debt:

• for the Jacksonville Transportation Authority for state highway projects within the City; • for the Jacksonville Port Authority for their port terminal facilities; • to finance improvements at Shands-Jacksonville – a large regional hospital serving the City’s

citizens, including its indigent population; • to provide economic development incentives to entice developers to invest in the downtown and

other targeted areas of the City, while using Tax Increment District funds to provide a dedicated revenue source for payment of the debt.

• For several other projects within the City, such as septic tank removals and sewer expansion and pollution remediation, etc. (See Note 18 for further discussion.)

Within the Better Jacksonville Plan (BJP) program, financed with referendum approved sales tax revenue, both the City’s Public Works Department and the Jacksonville Transportation Authority (JTA) construct road projects. The JTA’s projects involve improvements of both State roads (in the Jacksonville area) and City roads. The City/BJP bond financed State road projects result in non-asset bonds which negatively effect unrestricted net asset (see Note 8-H). A group of JTA constructed City road projects were contributed back to the City which impacted both Invested in Capital Assets, net of related debt and Unrestricted Net Assets. On the following page, Table A-2 provides a summary comparison of the City’s operations for the 2009 and 2010 fiscal year ends. .

-11-

2010 2009 2010 2009 2010 2009

Revenues:Program Revenues:

Fines & charges for services 127,960$ 125,048$ 90,661$ 87,490$ 218,621$ 212,538$ Operating grants/contributions 83,456 83,067 - - 83,456 83,067 Capital grants/contributions 170,558 52,464 - - 170,558 52,464

General revenues: Property taxes 493,171 474,381 - - 493,171 474,381 Utility service taxes 126,653 118,453 - - 126,653 118,453 Sales and tourist taxes 158,062 162,295 10,965 10,875 169,027 173,170 Intergovernmental 170,687 166,923 - - 170,687 166,923 Franchise Fees 39,842 38,891 - - 39,842 38,891 JEA Contribution 99,188 96,962 - - 99,188 96,962 Earnings on Investments 57,454 73,326 5,770 8,237 63,224 81,563 Miscellaneous 26,626 29,028 10,954 20,400 37,580 49,428

Total Revenues 1,553,657 1,420,838 118,350 127,002 1,672,007 1,547,840 Expenses

General government 186,072 180,054 - - 186,072 180,054 Human services 112,785 107,991 - - 112,785 107,991 Public safety 549,369 527,227 - - 549,369 527,227 Cultural and recreational 75,451 71,091 - - 75,451 71,091 Transportation 192,231 217,296 - - 192,231 217,296 Economic & physical environment 169,140 169,685 - - 169,140 169,685 Interest on long term debt 87,723 94,289 - - 87,723 94,289 Parking system - - 3,585 3,417 3,585 3,417 Motor vehicle inspections - - 476 433 476 433 Solid Waste - - 73,934 86,674 73,934 86,674 Storm water services - - 17,340 14,612 17,340 14,612 EverBank Field - - 24,485 20,361 24,485 20,361 Veterans Memorial Arena - - 15,602 12,355 15,602 12,355 Baseball Stadium - - 3,335 1,993 3,335 1,993 Performing Arts Center - - 4,265 4,006 4,265 4,006 Convention Center - - 3,804 4,342 3,804 4,342 Equestrian Center - - 1,816 1,890 1,816 1,890

Total Expenses 1,372,771 1,367,633 148,642 150,083 1,521,413 1,517,716 Increases (decreases) innet assets before transfers 180,886 53,205 (30,292) (23,081) 150,594 30,124 Transfers (35,534) (30,199) 35,534 30,199 - -

Change in net assets 145,352 23,006 5,242 7,118 150,594 30,124 Net assets (deficit), beginning of year 713,816 690,810 145,256 138,138 859,072 828,948 Net assets (deficit), end of year 859,168$ 713,816$ 150,498$ 145,256$ 1,009,666$ 859,072$

Total PrimaryGovernment

GovernmentalActivities

Business TypeActivities

Table A-2Statement of Activities

(In Thousands)as of September 30, 2010 and September 30, 2009

-12-

Governmental activities: The City’s governmental activities revenues increased $132.8 million from 2009 to 2010 (see Table A-2) and consists of:

• Capital grants/contributions increased $118.1 million due to the return of completed projects from JTA and a $20 million return of land due to a default by a property developer.

• Property tax revenues reflected an $18.8 million increase due to the increase in new construction within the City.

• Utility service taxes increased $8.2 million due to JEA rate increases in fiscal year 2010. • Interest revenues decreased $15.9 million due to the decreased earnings on investments

from 11.72% in fiscal year 2009 to 8.14% in fiscal year 2010. Increases in governmental activities expenses were $5.1 million.

• Transportation expenses decreased $25 million in 2010 due to a) a decrease in the ½ cent sales tax and b) a reduction of Better Jacksonville Plan (BJP) funding to the Jacksonville Transportation Authority for use on road projects which is expensed at the time of the transfer.

• Public safety expenses increased $22.1 million primarily due to a $33.7 million increase in the pension contributions cost.

• A $6.6 million decrease occurred in FY 2010 in interest on long term debt due to lower rates on variable rate debt.

Business Type activities: The City’s business type revenues decreased $8.7 million in fiscal year 2010:

• Increases in fines and charges for services of $3.2 million were due to the increase in Solid Waste user fees in fiscal year 2010.

• Miscellaneous revenues decreased $9.4 million as fiscal year 2009 included $7.7 million in transfers to realign the appropriate venues’ debt service cash escrow account within the various business units.

Business type activities expenses decreased $1.4 million in fiscal year 2010:

• Solid Waste’s decrease of $12.7 was due to the increased landfill closure/post-closure liability that occurred in fiscal year 2009 and did not reoccur in fiscal year 2010.

• The EverBank Field’s $4.1 million, the Veterans Memorial Arena’s $3.2 million, and the Baseball Stadium’s $1.3 million expenditure increases are due to their debt service expense paid directly from the venues in fiscal year 2010. In fiscal year 2009 the debt service in these venues was paid from governmental funds.

-13-

Expenses and Program Revenues - Governmental Activities

-

100

200

300

400

500

600

General Government Human Services Public Safety Culture andRecreation

Transportation Economic & PhysicalEnv.

$ M

illio

ns

Expenses Program Revenues

Revenues - Governmental Activities

Taxes50%

Capital Grants/Contributions11%

FranchiseFees3%

Intergovernmental 10%

Fines and Charges for Services

8%

OtherMisc3%

Earnings onInvestments

2%Operating Grants

Contributions4%

JEA Contribution6%

-14-

Expenses - Governmental Activities

Human Services8%

Interest on LT Debt6%

Culture &Recreation

7%

Public Safety40%

Transportation14%

Economic & PhysicalEnvironment

10%

General Government14%

Expenses and Program Revenues - Business-Type Activities

-

10

20

30

40

50

60

70

80

Storm W

ater S

ervice

s

Everba

nk Fiel

d

Veteran

s Mem

orial

Arena

Solid W

aste

Baseb

all S

tadium

Perform

ing A

rts

Conve

ntion

Cen

ter

Eques

trian C

enter

Parking

Sys

tem

$ M

illio

ns

Expenses Program Revenues

FINANCIAL ANALYSIS OF THE CITY GOVERNMENT’S FUNDS As noted earlier, the City of Jacksonville uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

-15-

Governmental Funds: The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of fiscal year 2010. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All non-major funds of each governmental fund type with legally adopted annual budgets are included in the Combining Schedule of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual, which can be found in the Combining Individual Fund Statements and Schedules. The General Fund and Major Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual is included as Required Supplementary Information following the Notes to the Financial Statements. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $41.8 million. The General Fund’s total fund balance was $110 million, with $44.9 million committed by City Council as an emergency reserve. The City’s Reserve Policy for the General Fund is covered by Section 106.107 of the City’s municipal code. The policy requires that the emergency reserve shall not be used except as initiated by the Mayor through written communication to City Council, explaining the emergency, with subsequent approval by two-thirds votes of all City Council members. The Emergency Reserve can be used to address unanticipated non-reimbursed expenditures arising out of a hurricane, tornado, other major weather related events, and/or other massive infrastructure failures or other disasters, whether man made or caused by nature. Under normal circumstances, the City would first elect to utilize the Operating Reserve before considering use of its Emergency Reserve. Key factors affecting changes in major funds and fund balance in fiscal year 2010 operations are as follows: General Fund:

• Property taxes account for approximately 50% of the general fund revenue and increased $18 million or 3.8% above the previous year primarily due to new construction within the City and the valuation change between July 1 and October 1 measurement.

Special Bonded Debt – Better Jacksonville Plan Obligations (BJP):

• Under the Interlocal Agreement, the City and JTA agreed to pledge the ½ cent sales tax and Constitutional Gas Tax to the payment of the BJP bonds. The ½ cent sales tax revenues decreased by $5.2 million in fiscal year 2010 as compared to the prior fiscal year.

• Principal and Interest payments increased $5.3 million in FY 2010 in accordance with the related amortization schedules.

Special Bonded Debt – Obligations:

• There was a $2 million increase from fiscal year 2009 $55.8 million to 2010 $57.8 million in bond principle and interest. The Special Bonded Debt-Obligations has separate funding sources from the Special Bonded Debt-Better Jacksonville Plan Obligations discussed above.

General Capital Projects:

• General Capital Project’s miscellaneous revenues increased in fiscal year 2010 due to a $9.5 million contribution from the Jacksonville Economic Development Commission for the Northbank Riverwalk Extension and the Met Park Redevelopment.

• Major projects in fiscal year 2010 resulted in an increase in capital outlay expense of $79.4 million. These major projects include the New Courthouse, the Ash Site/Pollution Remediation, and the Radio System Replacement.

-16-

Proprietary Funds: The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Solid Waste, EverBank Field and the Veteran’s Memorial Arena are reported as major proprietary funds in fiscal year 2010. The expenditure increases in EverBank Field and the Veterans Memorial Arena are due to their debt service expense paid directly from the venues in fiscal year 2010. Previously the debt service was paid with a transfer from the venues to the debt service funds. The $3.2 million increase in fines and charges for service revenues is representative of increases in Solid Waste fees and the $12.7 million decrease in Solid Waste expense is primarily the result of a decrease in fiscal year 2010 of the accrual for additional landfill closure/postclosure liability in Solid Waste as compared to the accrual for fiscal year 2009. General Fund Budgetary Highlights:

• Actual revenues for fiscal year 2010 were $6.4 million below the final budgeted amount, with Intergovernmental $10.4 million, Charges for Services $2 million and Utility Service Taxes $4.6 million and Fines and Forfeitures $1 million below final budget. Positive variances in final budget to actual occurred with $6.4 million actual over budget, with Property Tax Revenue $6.4 million and Interest/Other $2.9 million actual over budget. The primary reason for the decrease was due to a decrease of the ½ cent sales tax and the State’s City/County shared revenues which are sales tax based.

• Overall actual expenditures for fiscal year 2010 were $48.6 million under final budget with the primary portion of $41.6 related to the budget but unused emergency reserve.

• Recreation and Community Services expenditure budget was decreased $3.1 million due to a transfer of local match grants to support the Jacksonville Senior Services Program.

-17-

CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City of Jacksonville’s investment in capital assets for its governmental and business-type activities as of September 30, 2010, amounts to $3.2 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, furniture and equipment, infrastructure, and construction in progress (see Table A-3). With the partial completion of several major road, drainage, and building projects in fiscal year 2009, a focus was placed in fiscal year 2010 on areas such as capital improvements and the courthouse. Both fiscal years experienced considerable costs in road projects due to the continuation of the Better Jacksonville Plan. Additional information on the City of Jacksonville’s capital assets can be found in Notes to the Financial Statements, Footnote 6 of this report.

2010 2009 2010 2009 2010 2009

Land and easements 304,144$ 280,404$ 45,567$ 45,089$ 349,711$ 325,493$ Buildings and improvements 782,767 754,792 548,742 547,997 1,331,509 1,302,789 Furniture & Equipment 321,610 311,709 6,719 6,927 328,329 318,636 Construction and work in progress 187,996 97,090 - - 187,996 97,090 Infrastructure 2,009,805 1,796,854 11,608 2,841 2,021,413 1,799,695 Other Assets 33,828 21,078 - - 33,828 21,078

Less accumulated depreciation (895,051) (781,255) (178,838) (166,063) (1,073,889) (947,318)

Total $ 2,745,099 $ 2,480,672 $ 433,798 $ 436,791 $ 3,178,897 $ 2,917,464

as of September 30, 2010 and September 30, 2009

Governmental Business TypeActivities Activities Total

Table A-3Capital Assets

Net of Accumulated Depreciation (In Thousands)

Major project costs in fiscal year 2010 included the following: Fiscal Year 2010 Fiscal Year 2009 Change Courthouse Project $ 87.0 million $ 36.2 million $ 50.8 Road Projects 52.9 million 86.2 million ( 33.3) Countywide Resurfacing 13.3 million 11.6 million 1.7 Citywide Radio System 13.1 million 0 million 13.1 Miscellaneous Projects 10.8 million 5.8 million 5.0 Park Projects 9.6 million 5.9 million 3.7 Drainage Projects 9.0 million 20.6 million (11.6) Building Projects 4.5 million 14.8 million (10.3) Easements 2.9 million 0 million 2.9 Fire Department Projects 1.1 million 2.5 million ( 1.4)

Total $ 204.2 million $183.6 million $ 20.6

-18-

Debt Administration

Debt Service Funds account for the accumulation of resources for, and the payment of, interest and principal on most general governmental obligations. Individual debt service funds are described below. The Special Bonded Debt Obligations Fund accounts for the accumulation of resources for, and the payment of, principal and interest on the City’s special and limited bonded obligations payable solely from and secured by a lien upon and pledge of the revenues under the respective bond ordinances. The Special Bonded Debt - Better Jacksonville Plan Obligations Fund accounts for the accumulation of resources for and the payment of, principal and interest on the City’s special bonded obligations payable, which are related to the Better Jacksonville Plan. The Other Non-Bonded Debt Obligations Fund accounts for the accumulation of resources for and the payment of, principal and interest on other non-bonded debt obligations including the U. S. Government Guaranteed Notes Payable (HUD 108 loans). At year-end, the City had $2.8 billion in bonds and notes outstanding as shown in Table A-4. Additional information on the City of Jacksonville’s long term-debt can be found in Notes to the Financial Statements, Footnote 8 of this report.

2010 2009 2010 2009 2010 2009

Sp ecial Obligation Bond s 826,574$ 771,550$ -$ -$ 826,574$ 771,550$ Sp ecial Obligation-BJP 1,256,964 1,178,193 1,256,964 1,178,193 Revenue Bonds Payable 195,713 82,828 326,143 341,887 521,856 424,715 Notes Payable 59,845 79,605 - - 59,845 79,605 Notes Payable-BJP 65,872 60,719 - - 65,872 60,719 Deferred Amounts

Loss on Adv Ref (3,386) (4,065) (882) (1,158) (4,268) (5,223) Issuance p remiums 59,055 26,285 - - 59,055 26,285 Issuance d iscounts (3,005) (3,160) - - (3,005) (3,160)

Total $ 2,457,632 $ 2,191,955 $ 325,261 $ 340,729 $ 2,782,893 $ 2,532,684

GovernmentalActivities

Table A-4

Outstanding Debt at Year End September 30, 2010(In Thousands)

Bonds and Notes Payable

Business TypeActivities Total

The City of Jacksonville’s debt increased a net of $250.2 million as compared to fiscal year 2009. New indebtedness of the City of Jacksonville consists of: Closing Date Par Amount Source Primary Use December 2009 $107,640,000 Revenue Bonds Capital Projects September 2010 $ 100,205,000 Revenue Bonds BJP Capital Projects September 2010 $ 94,945,000 Revenue Bonds Capital Projects During the fiscal year, the City enhanced an Investor Relations page, designed to provide an introduction and overview of the City’s borrowing programs as well as supplement the City’s financial reporting efforts facilitating marketplace access to the City’s;

• Debt management Policy • Debt Affordability Study • Bond Series Overview by Program

o Ratings o Pledge descriptions o Outstanding debt by program and series o Required annual financial information (last five years) o Summary of key Bond Indenture requirements and definitions

-19-

During the fiscal year the City also continued to deal with underperforming sales tax revenues pledged to the Better Jacksonville Plan. Moody’s downgraded the Better Jacksonville Infrastructure Sales Tax Series 2001, 2003, and 2008 from Aa2 to A1, while Fitch downgraded the same Series from AA to AA-, both agencies citing declining revenue streams. The City’s underlying ratings published by either agency were not affected. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES The State of Florida, by constitution, does not have a state personal income tax and therefore the State operates primarily using sales, gasoline and corporate income taxes. Local governments (cities, counties and school boards) primarily rely on property and a limited array of permitted other taxes (sales, gasoline, utilities services, etc.) and fees (franchise, occupational license, etc.) for their governmental activities. There are a limited number of state-shared revenues and recurring and non-recurring (one-time) grants from both the state and federal governments. Other Economic Factors:

• The unemployment rate for the City of Jacksonville is 11.5%. This compares to the state’s average unemployment rate (11.8%) and the national average unemployment rate (9.7%). The Bureau of Labor Statistics reported thirty-eight states had statistically significant unemployment rate increases from 2009;

• Jacksonville has the largest Empowerment Zone in the nation; • Jacksonville has a major port, home to the National Football League’s (NFL) Jacksonville Jaguars, is

the insurance and financial center of Florida, and is the site of key U.S. Navy bases. Budget Highlights for fiscal 2010-2011:

• The recession has had a significantly negative impact upon the City’s revenues. This includes a drop in the City’s property-tax base of 7% or $3.7 billion on a year-over-year basis. In addition, state sales tax distributions are projected to be down 3% from the fiscal year 2010 budget amount.

• To partially offset the decline in revenues and allow the City to continue to fund government services, the City increased the millage rate from 9.2727 to 10.0353, which is below the rolled-back rate of 10.1193 mills. A rolled-back rate is defined as the millage rate that would generate the same amount of property tax revenue from one year to the next from properties that were on the tax roll in the previous year.

• The recession has also negatively impacted the City’s revenue sharing funding. The State’s revenue sharing program for local governments is heavily dependent upon sales tax monies to fund the distributions to county and municipal government. Sales taxes provide an estimated 83% of the funds that are distributed in the form of state revenue sharing. This has led to a reduction of $3.2 million, or 7%, in state revenue sharing compared to fiscal year 2010.

• The Jacksonville Journey will commence its third year of operations in fiscal year 2010-2011. This program, conceived by a panel of nearly 150 community leaders, provides more than $10 million toward keeping children safe and involved in positive activities, including expanded activities during the summer. It also funds programs for juvenile crime prevention as well as programs that will help ex-offenders transition to being productive citizens.

• A total of $46 million in expenses were cut from the general fund during the budget process. The savings include $20 million from reductions in salary and benefit costs (including $5.6 million from eliminated positions) and $26 million in departmental and non-departmental operating cost savings from a variety of sources. Also included in these savings are reductions of 66% in training costs, 56% in travel costs and $3.8 million in information technology operating costs reductions. In total, all but two departments within the City’s general fund experienced a reduction in the total budget from fiscal year 2010 to fiscal year 2011. Public Works’ budget had an increase of 0.2%, mainly due to an increase in utility costs. The Supervisor of Elections had an increase in its budget due to the three scheduled elections in fiscal year 2011 compared to the one election in fiscal year 2010

• The budget also includes the elimination of 102 non-public safety positions in fiscal year 2011. Since fiscal year 2006 a total of 732 non-public safety positions have been eliminated, a reduction of 18.4% of all non-public safety positions.

-20-

CONTACTING THE CITY’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Department of Finance, Accounting Division, 117 West Duval Street, Suite 375, Jacksonville, Florida 32202, or call (904) 630-1250.

-21-


-22-

CITYWIDE FINANCIAL

STATEMENTS

-23-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF NET ASSETS -SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

PRIMARY GOVERNMENTTOTALS

GOVERNMENTAL BUSINESS-TYPE COMPONENTACTIVITIES ACTIVITIES 2010 2009 UNITS

ASSETS:Cash and investments............................................................ $ 729,361 $ 58,596 $ 787,957 $ 698,372 $ 1,538,752 Cash in escrow and with fiscal agents.................................. 102,813 20,797 123,610 99,842 153 Securities lending.................................................................. 58,668 - 58,668 56,609 - Receivables, net.................................................................... 102,705 56,861 159,566 107,379 361,049 Internal balances................................................................... 3,837 (3,837) - - - Due from independent agencies and other governments...... 116,543 191 116,734 130,613 64,351 Inventories............................................................................ 8,169 8 8,177 8,020 120,525 Prepaid expenses and other assets........................................ 4,990 200 5,190 3,258 499,381 Deferred outflows ................................................................ 17,517 - 17,517 12,660 165,723 Deferred charge - landfill related costs................................. - 16,935 16,935 19,722 - Unamortized debt issuance costs.......................................... 17,560 231 17,791 17,407 -

CAPITAL ASSETS:Land, easements, art in public places and work in progress. 491,962 45,567 537,529 423,276 715,388 Other capital assets, net of depreciation............................... 2,253,137 388,231 2,641,368 2,494,187 7,312,226

TOTAL ASSETS............................................................... 3,907,262 583,780 4,491,042 4,071,345 $ 10,777,548

LIABILITIES:

Accounts payable and accrued liabilities.......................... 81,205 11,171 92,376 103,505 260,448 Contracts payable............................................................. 7,862 30 7,892 6,960 - Due to component units.................................................... 2,340 - 2,340 33 - Due to independent agencies and other governments...... 21,552 - 21,552 16,067 10,615 Deposits............................................................................ 4,064 1,861 5,925 7,988 50,637 Accrued interest payable.................................................. 47,169 7,705 54,874 44,701 139,371 Unearned revenue............................................................. 25,824 16,454 42,278 38,960 48,761 Securities lending............................................................. 60,344 - 60,344 58,646 - Liabilities payable from restricted assets.......................... - - - - 9,785 Other current liabilities..................................................... 2,125 - 2,125 2,983 90,028

NONCURRENT LIABILITIES:Fair market value of debt management instruments......... 17,517 - 17,517 12,660 148,400 Due within one year.......................................................... 99,023 13,555 112,578 151,595 219,617 Due in more than one year................................................ 2,679,069 382,506 3,061,575 2,768,175 7,088,792

TOTAL LIABILITIES..................................................... 3,048,094 433,282 3,481,376 3,212,273 8,066,454

NET ASSETS:Invested in capital assets, net of related debt.................... 974,561 135,912 1,110,473 1,079,510 1,490,481 Restricted for:

Debt service.................................................................... - - - - 35,281 State and Federal grants................................................. 90,561 - 90,561 82,282 - Capital projects............................................................... - - - - 21,534 Other participant's equity............................................... 1,652 - 1,652 4,271 - Permanent fund, non-expendable................................... 123 - 123 123 - Other purposes............................................................... - - - - 334,013

Unrestricted (deficit)......................................................... (207,729) 14,586 (193,143) (307,114) 829,785

TOTAL NET ASSETS ..................................................... $ 859,168 $ 150,498 $ 1,009,666 $ 859,072 $ 2,711,094

See accompanying notes.

-24-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF ACTIVITIES -FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

PROGRAM REVENUES PRIMARY GOVERNMENT

FINES AND

CHARGES OPERATING CAPITAL BUSINESS- TOTALS

FOR GRANTS AND GRANTS AND GOVERNMENTAL TYPE COMPONENT

FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES ACTIVITIES 2010 2009 UNITS

PRIMARY GOVERNMENT: Governmental activities:

General government..................... $ 186,072 $ 75,506 $ 1,247 9,552$ (99,767)$ (99,767)$ (114,146)$ Human services............................ 112,785 1,098 14,943 36 (96,708) (96,708) (70,994) Public safety................................. 549,369 46,457 11,140 672 (491,100) (491,100) (459,943) Culture and recreation.................. 75,451 3,806 2,396 930 (68,319) (68,319) (59,899) Transportation.............................. 192,231 198 3,811 135,003 (53,219) (53,219) (174,377) Economic environment................ 71,082 - 46,042 20,000 (5,040) (5,040) (44,204) Physical environment................... 98,058 895 3,877 4,365 (88,921) (88,921) (88,928) Interest on long term debt............ 87,723 - - - (87,723) (87,723) (94,289)

Total governmental activities.......... 1,372,771 127,960 83,456 170,558 (990,797) (990,797) (1,106,780)

Business-type activities:

Parking system............................. 3,585 3,383 - - - (202) (202) 366 Motor vehicle inspections............ 476 431 - - - (45) (45) (11) Solid Waste.................................. 73,934 47,112 - - - (26,822) (26,822) (43,922) Storm Water Services................... 17,340 28,035 - - - 10,695 10,695 14,522 EverBank Field............................ 24,485 3,719 - - - (20,766) (20,766) (16,825) Veterans Memorial Arena............ 15,602 4,797 - - - (10,805) (10,805) (7,651) Baseball Stadium.......................... 3,335 426 - - - (2,909) (2,909) (1,653) Performing Arts............................ 4,265 1,760 - - - (2,505) (2,505) (2,256) Convention Center....................... 3,804 795 - - - (3,009) (3,009) (3,575) Equestrian Center......................... 1,816 203 - - (1,613) (1,613) (1,588)

Total business-type activities.......... 148,642 90,661 - - - (57,981) (57,981) (62,593)

Total primary government........... $ 1,521,413 $ 218,621 $ 83,456 $ 170,558 (990,797) (57,981) (1,048,778) (1,169,373) COMPONENT UNITS:

Governmental activities............... $ 85,541 $ 1,710 $ 12,689 $ 3,062 (68,080)$ Business-type activities................ 2,149,200 2,040,033 19,802 53,164 (36,201)

Total component units................ $ 2,234,741 $ 2,041,743 $ 32,491 $ 56,226 (104,281)$

General revenues:

Property taxes....................................................................................................... 493,171 - 493,171 474,381 - Utility service taxes.............................................................................................. 126,653 - 126,653 118,453 - Sales and tourist taxes.......................................................................................... 158,062 10,965 169,027 173,170 63,573 Intergovernmental - unrestricted.......................................................................... 170,687 - 170,687 166,923 46,594 JEA Contribution................................................................................................ 99,188 - 99,188 96,688 -

Unrestricted earnings on investments.................................................................. 57,454 5,770 63,224 81,563 10,777 Franchise Fees...................................................................................................... 39,842 - 39,842 38,891 -

Miscellaneous....................................................................................................... 26,626 10,954 37,580 49,428 35,462 Transfers.......................................................................................................................... (35,534) 35,534 - - -

Total general revenues and transfers................................................................................ 1,136,149 63,223 1,199,372 1,199,497 156,406

Change in net assets......................................................................................................... 145,352 5,242 150,594 30,124 52,125

Net assets, beginning of year........................................................................................... 713,816 145,256 859,072 828,948 2,658,969

Net assets, end of year..................................................................................................... $ 859,168 150,498$ $ 1,009,666 $ 859,072 $ 2,711,094


-25-


-26-

FUND FINANCIAL STATEMENTS

-27-


-28-

MAJOR GOVERNMENTAL FUNDS: GENERAL FUND

The General Fund is the principal fund of the City and is used to account for all activities not included in other funds. The General Fund accounts for the normal recurring activities of the City (i.e, police, fire, public works, courts, general government, etc.). These activities are funded principally by property taxes, intergovernmental revenues, and licenses and fees.

DEBT SERVICE FUNDS

The Special Bonded Debt Obligations Fund accounts for the accumulation of resources for, and the payment of, principal and interest on the City’s special and limited bonded obligations, which are payable solely from and secured by a lien upon and pledge of the revenues under the respective bond ordinances. The Special Bonded Debt - Better Jacksonville Plan Obligations Fund accounts for the accumulation of resources for, and the payment of, principal and interest on the City's special bonded obligations payable, which are related to the Better Jacksonville Plan.

CAPITAL PROJECTS FUNDS

The General Projects Fund receives monies appropriated from the General Fund and other sources including proceeds from non-bonded debt for general capital improvements.

-29-

CITY OF JACKSONVILLE, FLORIDABALANCE SHEET - GOVERNMENTAL FUNDSSEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

SPECIALBONDED DEBT-

BETTERJACKSONVILLE SPECIAL

GENERAL PLAN BONDED DEBT-FUND OBLIGATIONS OBLIGATIONS

ASSETS:Equity in cash and investments.................................................. $ 83,268 $ 106,281 $ 28,638 Cash in escrow and with fiscal agents....................................... 369 40,765 48,658 Securities lending collateral....................................................... 58,668 - - Receivables (net, where applicable, of

allowances for uncollectibles):Accounts and interest................................................. 15,544 - - Mortgages................................................................... 33 - - Other........................................................................... 14,316 - -

Due from other funds................................................................. 10,269 - - Due from independent agencies and other governments........... 47,785 - - Inventories.................................................................................. 6,163 - - Prepaid items.............................................................................. - - - TOTAL ASSETS...................................................................... $ 236,415 $ 147,046 $ 77,296

LIABILITIES AND FUND BALANCES

LIABILITIES:Accounts payable and accrued liabilities................................... $ 44,194 $ - $ -Contracts payable....................................................................... 15 - - Due to other funds...................................................................... - - - Due to component units............................................................. 33 - - Due to independent agencies and other governments................ 440 - - Due to individuals...................................................................... - - - Bonds payable............................................................................ - 22,291 38,963 Interest payable.......................................................................... 123 25,186 18,851 Matured interest payable............................................................ - - Deposits...................................................................................... 1,384 - - Unearned revenue...................................................................... 19,817 - - Securities lending obligations.................................................... 60,344 - - Advances from other funds........................................................ - - -

TOTAL LIABILITIES................................................................... 126,350 47,477 57,814

FUND BALANCES: Non Spendable:

Non Spendable................................................................ 6,604 - -

Spendable: Restricted........................................................................ - 99,569 16,505 Committed...................................................................... 58,921 - - Assigned.......................................................................... 2,766 - 2,977 Unassigned...................................................................... 41,774 - -

TOTAL FUND BALANCES.......................................................... 110,065 99,569 19,482

TOTAL LIABILITIES AND FUND BALANCES....................... $ 236,415 $ 147,046 $ 77,296 See accompanying notes.

-30-

NON MAJOR TOTALSGENERAL GOVERNMENTALPROJECTS FUNDS 2010 2009

$ 132,556 $ 246,513 $ 597,256 $ 463,358 - 3,907 93,699 99,842 - - 58,668 56,609

- 2,534 18,078 17,872 - 52,043 52,076 38,652

373 15 14,704 14,905 - - 10,269 28,716

2,623 64,510 114,918 129,191 - - 6,163 6,259 - 4 4 -

$ 135,552 $ 369,526 $ 965,835 $ 855,404

$ 13,053 $ 32,606 $ 89,853 $ 96,313508 7,339 7,862 6,959

- 6,419 6,419 27,033 - 2,307 2,340 33 - - 440 - - 272 272 203 - - 61,254 60,429 - - 44,160 38,335 - 39 39 39 - 2,678 4,062 4,024

373 3,276 23,466 24,013 - - 60,344 58,646

7,807 - 7,807 8,500

21,741 54,936 308,318 324,527

- 127 6,731 6,382

60,814 152,258 329,146 221,416 52,997 161,967 273,885 287,503

- 238 5,981 11,878 - - 41,774 3,698

113,811 314,590 657,517 530,877

$ 135,552 $ 369,526 $ 965,835 $ 855,404

-31-


-32-

City of Jacksonville, Florida

Reconciliation of the Governmental Funds Balance Sheetto the Statement of Net Assets

September 30, 2010(in thousands)

Total fund balances- governmental funds 657,517$

Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities 2,745,099 are not financial resources and therefore are not reported in the funds

Long term liabilities - liabilities are not due and payable in the current period and are not reported in the funds: Bonds and notes payable (2,404,968) Unamortized bond discounts 3,005 Unamortized bond premium (59,055) Unamortized loss on advance refunding of debt 3,386 Total bonds and notes payable (2,457,632)

Certain assets and liabilities reported in governmental activities are not financial resources and therefore are not reported in the funds: Notes and Bonds payable accrual at the fund level 61,254 Compensated absences (63,933) Reduction of accounts payable for debt accruals 16,447 Unamortized bond issuance costs 17,560 Estimated liability for self insured losses (84,775) Other post employment benefits (OPEB) liability (21,074) Accrued liability for pollution remediation (150,678) Accrued liability to other governments - Home program (1,853) Amounts due to independent agencies or other governments (21,112)

Internal service funds are used by management to charge the costs of certain activities, such as fleet maintenance and insurance, to individual funds. The Capital Assets and Long term liabilities are consolidated with the governmental funds on an entity-wide basis. This figure represents the net of Current Assets and Current Liabilities of the Internal Service Funds. 162,348

Net assets of governmental activities 859,168$


-33-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

SPECIALBONDED DEBT-


GENERAL PLAN BONDED DEBT-FUND OBLIGATIONS OBLIGATIONS

REVENUE:Property taxes.................................................................. $ 476,532 $ - $ -Utility Service taxes......................................................... 126,878 - - Sales and tourist taxes...................................................... 1,058 - - Licenses and permits........................................................ 47,894 - - Intergovernmental............................................................ 119,296 24,686 - Charges for services......................................................... 71,531 - - Fines and forfeitures........................................................ 2,997 - - JEA contribution.............................................................. 99,188 - - Interest............................................................................. 13,952 8,543 4,534 Other................................................................................ 17,152 - -

Total Revenue....................................................................... 976,478 33,229 4,534

EXPENDITURES:Current:

General government................................................ 150,339 - - Human services....................................................... 69,301 - - Public safety............................................................ 521,183 - - Culture and recreation............................................. 60,129 - - Transportation......................................................... 41,410 - - Economic environment........................................... 12,631 - - Physical environment.............................................. 15,059 - -

Capital outlay................................................................... - - - Debt service:

Principal.................................................................. - 22,291 38,541 Interest and fiscal charges....................................... - 49,646 34,323 Other ...................................................................... - - 406

Total Expenditures................................................................ 870,052 71,937 73,270

EXCESS OF REVENUE OVER(UNDER) EXPENDITURES...................................... 106,426 (38,708) (68,736)

OTHER FINANCING SOURCES (USES):Long term debt issued...................................................... 3,556 - - Refunding bond issued.................................................... - - - Premium on special obligation bonds payable................ - 9,059 - Payment to escrow agent - refunded bonds..................... - - - Transfers in...................................................................... 16,747 42,108 67,998 Transfers out.................................................................... (126,335) - -

Total Other Financing Sources (Uses).................................. (106,032) 51,167 67,998

NET CHANGES IN FUND BALANCES.................... 394 12,459 (738)

FUND BALANCE, BEGINNING OF YEAR ............... 110,181 87,110 20,220 Change in reserve for inventory of supplies.................... (510) - -

FUND BALANCES, END OF YEAR............................... $ 110,065 $ 99,569 $ 19,482


-34-

NON MAJOR TOTALS

GENERAL GOVERNMENTALPROJECT FUNDS 2010 2009

$ - $ 16,639 $ 493,171 $ 474,381 - - 126,878 118,453 - 157,004 158,062 162,295 - - 47,894 46,774

13,865 110,161 268,008 263,316 - 41,032 112,563 112,013 - 2,098 5,095 5,152 - - 99,188 96,688

4,907 16,559 48,495 62,593 1,280 9,564 27,996 29,031

20,052 353,057 1,387,350 1,370,696

- 29,920 180,259 167,245 - 43,491 112,792 107,309 - 32,573 553,756 527,027 - 7,223 67,352 64,076 - 122,358 163,768 144,298 - 57,995 70,626 66,713 - 6,667 21,726 24,945

124,459 119,142 243,601 273,518

- 945 61,777 79,554 - 356 84,325 89,339 - 8,130 8,536 2,846

124,459 428,800 1,568,518 1,546,870

(104,407) (75,743) (181,168) (176,174)

164,566 151,558 319,680 166,858 - - - 18,200 - 10,484 19,543 7,904 - - - (18,622)

19,263 35,522 181,638 196,914 (890) (85,318) (212,543) (232,049)

182,939 112,246 308,318 139,205

78,532 36,503 127,150 (36,969)

35,279 278,087 530,877 567,846 - - (510) -

$ 113,811 $ 314,590 $ 657,517 $ 530,877

-35-

City of Jacksonville, FloridaReconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Funds to the Statement of Activities For The Year Ended September 30, 2010

(in thousands)

Net change in fund balances- total governmental funds: 127,150$

Amounts reported for governmental activities in the statement of activities are different because:Certain assets and liabilities reported in governmental activities are not current financial resources or donot require the use of current financial resources.

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Also, certain capital assets are contributed to the City upon completion, requiring recognition of revenue not reported in the funds. Capital assets acquired by use of financial resources 220,475 Capital assets contributed by developers and JTA 156,693 Capital assets transferred from proprietary funds of the city 184 Current year depreciation (105,928) Loss on disposition of assets (416)

271,008 Governmental funds report certain bond transactions as resources or uses. However, in the statement of activities these transactions are reported over the life of the debt as expenses. Bond Issuance Costs 1,707 Amortization of issuance costs (1,284) Amortization of bond discounts (155) Amortization of bond premium 3,805 Additional bond premium with new debt issue (19,543) Amortization - loss on refunding (679)

(16,149) Repayment of bond principal is an expenditure in governmental funds, but the repayment results in a reduction of long-term liabilities in the statement of net assets. Issuing debt provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Long-term debt issued (319,680) Principal repayment 61,777

(257,903) Some revenues and expenses reported in the statement of activities did not require the use of or provide current financial resources and therefore are not reported in governmental funds: Decrease in accrual for self insured liabilities 415 Increases in compensated absences payable (2,399) Increase amounts due to independent agencies and other governments (7,545) Miscellaneous payable (225) Decrease in payable to other governments 927 Other post employment benefits liability (5,929) Decrease in accrual for pollution remediation 2,889 Decrease in Shipyards accrual 2,500 Refund of amount in escrow for debt payment 426 Inventory adjustment (510) Principal reduction of Internal Banking fund debt 12,419

(271,084) Internal service funds are used to charge the cost of certain activities to individual funds. The net revenue (expense) and transfers are reported with governmental activities. Interest revenue 8,959 Other non-operating expenses (1,554) Operating income 15,518 Transfers in, net (4,645)

18,278

Change in Net Assets - Governmental Activities 145,352$


-36-

MAJOR ENTERPRISE FUNDS:

Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises and where the costs of providing goods or services to the general public are recovered primarily through user charges; or where the City has decided that determination of net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Individual major enterprise funds are described below.

The Solid Waste Disposal Fund accounts for collection, recycling and disposal of commercial and residential garbage services throughout the city, including the operation of three municipally owned landfill sites, two of which are closed.

The EverBank Field Fund accounts for events held at the stadium including National Football League and college football games, concerts and other activities. The Veterans Memorial Arena Fund accounts for events held at the arena including concerts, college basketball games, and other entertainment events such as the circus, ice skating, gymnastics, professional wrestling and motor sports.

-37-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF NET ASSETS - PROPRIETARY FUNDSSEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

SOLID VETERANS TOTALS INTERNALWASTE EVERBANK MEMORIAL NON MAJOR SERVICE

DISPOSAL FIELD ARENA ENTERPRISE 2010 2009 FUNDS

ASSETS: Equity in cash and investments.............................. $ 37,011 $ 1,050 $ 885 $ 1,625 $ 40,571 $ 72,476 $ 132,105 Cash with fiscal agents........................................... 4,526 7,798 5,623 2,850 20,797 23,978 9,114 Receivables (net, where applicable, of

allowances for uncollectibles): Accounts.......................................................... 23,501 298 120 32,940 56,859 17,703 204 Loans receivable.............................................. - - - - - - 47,352 Other................................................................ - - - - - - 1,499

Due from other funds............................................. - - 540 134 674 33 - Due from independent agencies

and other governments........................................ 24 167 - - 191 103 1,625 Interest and dividend receivables........................... 2 - - - 2 2 - Inventories.............................................................. - - - 8 8 11 2,006 Prepaid expenses and other assets.......................... - 30 147 23 200 132 6,502

Total Current Assets...................................................... 65,064 9,343 7,315 37,580 119,302 114,438 200,407

NONCURRENT ASSETS: Advances to other funds......................................... - - - - - - 7,807 Sinking fund cash and investments........................ 18,025 - - - 18,025 16,798 - Construction fund cash and investments................ - - - - - - - Loans receivable.................................................... - - - - - - 186,390 Other receivables.................................................... - - - - - - 13,894

CAPITAL ASSETS:Land, easements and work in progress.................. 12,025 23,339 1,602 8,601 45,567 45,089 203 Other capital assets, net of depreciation................. 16,773 167,111 106,821 97,526 388,231 391,702 67,845

Deferred charge - Landfill related costs................. 16,935 - - - 16,935 19,722 - Other deferred charges........................................... 231 - - - 231 270 -

Total Noncurrent Assets................................................ 63,989 190,450 108,423 106,127 468,989 473,581 276,139

TOTAL ASSETS......................................................... 129,053 199,793 115,738 143,707 588,291 588,019 476,546

ENTERPRISE FUNDS

-38-

CITY OF JACKSONVILLE, FLORIDA STATEMENT OF NET ASSETS - PROPRIETARY FUNDS SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)


DISPOSAL FIELD ARENA ENTERPRISE 2010 2009 FUNDS

LIABILITIES:Accounts payable and accrued liabilities............... $ 4,925 $ 1,472 $ 664 $ 4,110 $ 11,171 $ 8,041 $ 7,799 Contracts payable................................................... 30 - - - 30 1 - Due to other funds.................................................. - 378 2 4,131 4,511 996 13 Deposits.................................................................. 212 428 560 661 1,861 3,962 2 Accrued interest payable........................................ 651 3,658 2,575 821 7,705 8,233 2,970 Current portion of bonds payable........................... 3,875 4,140 3,049 2,065 13,129 15,743 6,144 Unearned revenue.................................................. 9,410 - 35 7,009 16,454 12,438 2,358 Accrued compensated absences, current portion... 196 - - 230 426 402 1,039 Current portion of loans payable............................ - - - - - - 9,800

Total Current Liabilities................................................ 19,299 10,076 6,885 19,027 55,287 49,816 30,125

NONCURRENT LIABILITIES:

Estimated liability for self-insured losses.............. - - - - - - 83,675 Liability for landfill closure and postclosure care. 65,825 - - - 65,825 63,668 - Accrued compensated absences............................. 457 - - 537 994 939 2,424 Notes payable......................................................... - - - - - - 55,000 Loans payable....................................................... 2,250 - - - 2,250 2,250 17,845 Bonds payable........................................................ 27,329 144,835 107,068 32,902 312,134 324,986 206,928 Other liabilities....................................................... 859 - - 444 1,303 1,104 1,159

Total Noncurrent Liabilities.......................................... 96,720 144,835 107,068 33,883 382,506 392,947 367,031

TOTAL LIABILITIES................................................ 116,019 154,911 113,953 52,910 437,793 442,763 397,156

NET ASSETS:

Invested in capital assets, net of related debt......... 23,970 41,475 (1,694) 72,161 135,912 126,221 40,403 Restricted for:

Restricted - other participant's equity................. - - - - - - 1,652 Unrestricted (deficit).............................................. (10,936) 3,407 3,479 18,636 14,586 19,035 37,335

TOTAL NET ASSETS ............................................... $ 13,034 $ 44,882 $ 1,785 $ 90,797 $ 150,498 $ 145,256 $ 79,390


ENTERPRISE FUNDS

-39-


-40-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF REVENUE, EXPENSES, AND CHANGES IN FUND NET ASSETSPROPRIETARY FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)


DISPOSAL FIELD ARENA ENTERPRISE 2010 2009 FUNDSOPERATING REVENUE:

Sales and tourist taxes......................................... $ - $ 6,727 $ - $ 4,238 $ 10,965 $ 10,875 $ -Charges for services............................................ 47,112 3,719 4,797 35,033 90,661 87,490 226,068 Charges for services for independent authorities - - - - - - 11,704 Other.................................................................... - 5,398 3,576 1,924 10,898 8,130 1,077

Total Operating Revenue............................................. 47,112 15,844 8,373 41,195 112,524 106,495 238,849

OPERATING EXPENSES: Personal services................................................. 6,288 1,991 1,642 13,653 23,574 23,334 32,927 Supplies and materials........................................ 57 86 70 388 601 757 27,172 Central services................................................... 4,178 195 135 3,735 8,243 7,318 8,450 Interdepartmental charges................................... 162 963 427 1,263 2,815 2,622 - Other services and charges.................................. 58,014 8,471 5,728 10,459 82,672 91,841 30,095 Depreciation and amortization............................ 2,061 5,462 2,451 3,393 13,367 13,279 20,913 Court reporter services........................................ - - - - - - 66 Claims and losses................................................ - - - - - - 16,846 Insurance premiums and participant dividends... - - - - - - 93,248

Total Operating Expenses........................................... 70,760 17,168 10,453 32,891 131,272 139,151 229,717

OPERATING (LOSS) INCOME............................. (23,648) (1,324) (2,080) 8,304 (18,748) (32,656) 9,132

NON-OPERATING REVENUE (EXPENSES): Interest revenue................................................... 4,515 430 164 661 5,770 8,237 8,959 Interest expense................................................... (1,304) (7,317) (5,149) (1,730) (15,500) (8,262) - Other.................................................................... (1,870) 3 21 32 (1,814) 9,600 4,832

Total Non-Operating Revenue (Expenses).................. 1,341 (6,884) (4,964) (1,037) (11,544) 9,575 13,791

(LOSS) INCOME BEFORE TRANSFERS............ (22,307) (8,208) (7,044) 7,267 (30,292) (23,081) 22,923

TRANSFERS:Transfers in......................................................... 21,417 8,665 8,057 5,798 43,937 53,738 3,769 Transfers out....................................................... (750) (1,951) (159) (5,543) (8,403) (23,539) (8,414)

Net Transfers 20,667 6,714 7,898 255 35,534 30,199 (4,645)

CHANGES IN NET ASSETS................................... (1,640) (1,494) 854 7,522 5,242 7,118 18,278

NET ASSETS, BEGINNING OF YEAR................. 14,674 46,376 931 83,275 145,256 138,138 61,112

NET ASSETS, END OF YEAR................................ $ 13,034 $ 44,882 $ 1,785 $ 90,797 $ 150,498 $ 145,256 $ 79,390


ENTERPRISE FUNDS

-41-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF CASH FLOWS PROPRIETARY FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

SOLID VETERANSWASTE EVERBANK MEMORIAL

DISPOSAL FIELD ARENA

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers...................................................................................... $ 34,531 $ 15,533 $ 9,998 Payments to suppliers.......................................................................................... (61,668) (8,274) (5,758) Payments to employees ....................................................................................... (6,141) (1,991) (1,642) Internal activity-cash receipts from other funds.................................................. - 375 - Internal activity-cash payments to other funds.................................................... - - (506) Other cash receipts .............................................................................................. 4,356 - - Other operating cash payments............................................................................ (2,434) (736) (2,832)

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES.......... (31,356) 4,907 (740)

NONCAPITAL FINANCING ACTIVITIES:Cash received through transfers from other funds................................................. 21,417 8,665 8,057Cash payments through transfers to other funds.................................................... (750) (1,951) (159)

NET CASH PROVIDED BY (USED IN) NONCAPITAL FINANCING ACTIVITIES.................................................................................................. 20,667 6,714 7,898

CAPITAL AND RELATED FINANCING ACTIVITIESAcquisition and construction of capital assets....................................................... (1,210) - (13) Proceeds from the sale of capital assets................................................................. 3 1 21 Decrease in landfill costs and other charges......................................................... - - - Payments on capitalized lease obligations............................................................. - - - Increase (decrease) in construction fund cash and investments............................. (29) (65) (73) Principal paid on long-term obligations................................................................. (3,695) (4,005) (2,927) Proceeds from loans payable................................................................................ - - - Payments on loans payable.................................................................................... - - - Payments on notes payable.................................................................................... - - - Proceeds from bonds payable................................................................................ - - - Interest and Payments to refunded bond escrow agent.......................................... (1,304) (7,317) (5,149)

NET CASH PROVIDED BY (USED IN) CAPITAL AND RELATED FINANCING ACTIVITIES........................................................................... (6,235) (11,386) (8,141)

INVESTING ACTIVITIES:Interest and dividends on investments................................................................... 4,515 430 164

NET CASH PROVIDED BY INVESTING ACTIVITIES................................ 4,515 430 164

NET INCREASE (DECREASE) IN EQUITY IN CASH AND INVESTMENTS... (12,409) 665 (819)

Equity in cash and investments at October 1, 2009.............................................. 49,420 385 1,704

Equity in cash and investments at September 30, 2010......................................... $ 37,011 $ 1,050 $ 885

ENTERPRISE FUNDS

-42-

TOTALS INTERNALNON MAJOR SERVICEENTERPRISE 2010 2009 FUNDS

$ 17,163 $ 77,225 $ 90,798 $ 245,415(13,910) (89,610) (93,921) (168,145)(13,456) (23,230) (22,370) (32,824)

3,440 3,815 5,143 - (435) (941) (74) (98,059) 827 5,183 36,052 2,464

(1,276) (7,278) (3,104) (24,640)

(7,647) (34,836) 12,524 (75,789)

5,798 43,937 53,738 3,769 (5,543) (8,403) (23,538) (8,414)

255 35,534 30,200 (4,645)

(9,129) (10,352) (13,222) (13,371)5 30 - 965- - - - - - - -

3,203 3,036 (16,501) - (4,962) (15,589) (14,954) -

- - - 2,596 - - - (12,946)- - - (18,815)- - - 132,504

(1,730) (15,500) (8,255) (9,114)

(12,613) (38,375) (52,932) 81,819

663 5,772 8,230 8,958

663 5,772 8,230 8,958

(19,342) (31,905) (1,978) 10,343

20,967 72,476 74,454 121,762

$ 1,625 $ 40,571 $ 72,476 $ 132,105


(continued)

ENTERPRISE FUNDS

-43-

CITY OF JACKSONVILLE, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands; continued)

SOLID EVERBANK VETERANSWASTE FIELD MEMORIAL

DISPOSAL STADIUM ARENA

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

OPERATING ACTIVITIES:OPERATING INCOME (LOSS)......................................................................... ($ 23,648) ($ 1,324) ($ 2,080)Adjustments to reconcile operating income (loss)

to net cash provided by (used in) operating activitiesDepreciation..................................................................................................... 2,061 5,462 2,451

(Increase) decrease in assets:Receivables and other current assets, net........................................................... (18,195) (114) 1,680 Due from other funds.......................................................................................... - - (507) Advances to other funds..................................................................................... - - - Due from independent agencies and other governments.................................... 79 (167) - Inventories.......................................................................................................... - - - Other receivables................................................................................................ - - - Loan receivables................................................................................................ - - - Prepaid expenses and other assets...................................................................... - (30) (15)

Increase (decrease) in liabilities:Accounts payable and accrued expenses............................................................ 849 278 158 Contracts payable................................................................................................ 29 - - Due to other funds.............................................................................................. - 375 1 Deposits.............................................................................................................. (8) 227 (2,405) Accrued interest payable..................................................................................... (948) (3,458) (2,558) Unearned revenue............................................................................................... 5,535 - (40) Loans payable..................................................................................................... - - - Other liabilites.................................................................................................... 652 - - Interest payables................................................................................................. 651 3,658 2,575 Liability for landfill closure and postclosure care.............................................. 1,525 - - Liability for self-insured losses.......................................................................... - - - Accrued compensated absences.......................................................................... 62 - -

TOTAL ADJUSTMENTS............................................................................... (7,708) 6,231 1,340

NET CASH PROVIDED BY (USED IN)OPERATING ACTIVITIES....................................................................... ($ 31,356) $ 4,907 ($ 740)

NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIESChange in the fair value of investments..................................................................... $ 2,008 $ 32 ($ 18)Capital assets tranferred from governmental activities to

proprietary funds of the city................................................................................... 184 - -

-44-

ENTERPRISE FUNDS

TOTALS INTERNALNON MAJOR SERVICEENTERPRISE 2010 2009 FUNDS

$ 8,304 ($ 18,748) ($ 32,656) $ 9,132

3,393 13,367 13,279 20,913

(22,529) (39,158) (586) (144) (134) (641) 42 -

- - - 693 - (88) 64 (306) 3 3 3 (256) - - - 544 - - - (93,966)

(23) (68) 140 (1,859)

2,150 x 3,435 (1,288) (3,324) 29 x 58 25 -

3,138 x 3,514 725 (707) 84 x (2,102) 2,156 -

- (6,964) 6,336 - (1,479) x 4,016 2,795 (151)

- - 2,250 (3,386) 179 179 831 948 306

(779) x 6,105 918 - - 1,525 16,725 - - - - (3,075)

17 x 79 648 (203)

(15,951) (16,088) 45,180 (84,921)

($ 7,647) ($ 34,836) $ 12,524 ($ 75,789)

$ 160 $ 2,182 $ 3,479 ($ 1,355)

- 184 590 -

-45-


-46-

FIDUCIARY FUND LEVEL STATEMENTS

PENSION TRUST FUNDS are funds administered by independent boards for which the City performs a fiduciary role under a defined benefit, defined contribution and disability programs. The participant's retirement annuity is based on a statutory formula using such factors as age, average salary, length of service and others.

PRIVATE PURPOSE TRUST FUND is used to report all trust arrangements, other than those properly reported in pension trust funds, under which principal and income benefit individuals. The City reports its James Brady Disabled Scholarship, Michael Jackson Music Scholarship, J.B. Smith Memorial Scholarship, and Lex Hester Memorial Scholarship funds as private purpose trusts.

AGENCY FUNDS are funds which hold monies in an agency capacity for various government units, individuals or funds.

-47-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF FIDUCIARY NET ASSETSFIDUCIARY FUNDSSEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

PRIVATEPENSION PURPOSETRUST TRUST AGENCY

FUNDS FUND FUNDS

2010 2009 2010 2009 2010 2009ASSETS

CURRENT ASSETS:Equity in cash and investments...................................... $ 47,511 $ 49,197 $ 247 $ 229 $ 37,977 64,238$

Receivables (net, where applicable, of

allowances for uncollectibles): Interest and dividends............................................ 6,709 6,682 - - - - Accounts................................................................ 258 189 - - 2,309 3,137 Other........................................................................ 1,926 - - - - -

Due from independent agencies and other governments 4,187 - - - - - Due from component units............................................. 1,184 - - - - -

Investments, at fair value:

U.S. Government obligations..................................... 138,824 81,855 - - - - Federal Agencies........................................................ 120,064 117,271 - - - Domestic corporate bonds.......................................... 434,403 442,147 - - - - Short-term Investments.............................................. 10,541 37,319 - - - - Domestic stocks.......................................................... 1,014,762 972,251 - - - - International stocks..................................................... 470,381 374,912 - - - - Real Estate.................................................................. 175,787 171,227 - - - - Other Fixed Income.................................................... 56,804 60,509 - - - - Alternative investments.............................................. 39,845 43,556 - - - - Equity in pooled investments..................................... 12,411 - - - - -

Total investments................................................... 2,473,822 2,301,047 - - - -

Total Current Assets............................................................ 2,535,597 2,357,115 247 229 40,286 67,375

CAPITAL ASSETS Other capital assets, net of depreciation......................... 23 49 - - - -

Total Capital Assets, Net..................................................... 23 49 - - - -

Securities Lending Collateral.............................................. 107,046 103,599 - - - -

TOTAL ASSETS............................................................... 2,642,666 2,460,763 247 229 40,286 67,375

LIABILITIES

CURRENT LIABILITIES: Obligations Under Securities Lending Agreement........ 108,319 105,108 - - - - Accounts payable and accrued liabilities....................... 9,140 7,677 - - 190 227 Due to independent agencies and other governments.... - - - - 16,125 28,235 Due to individuals.......................................................... - - - - 5,312 4,627 Current portion Accrued compensated absences............. - 26 - - - - Deposits held in escrow.................................................. - - - - 17,849 34,286 Miscellaneous liabilities................................................. - - - - 810 -

Total Current Liabilities...................................................... 117,459 112,811 - - 40,286 67,375


Accrued compensated absences..................................... 101 62 - - - - Terminal Leave - Group Care........................................ 326 - - - - - Due to participants......................................................... 193,768 175,854 - - - -

Total Noncurrent Liabilities................................................ 194,195 175,916 - - - -

TOTAL LIABILITIES...................................................... 311,654 288,727 - - 40,286$ 67,375$

NET ASSETS HELD IN TRUST FOR PENSION BENEFITS AND OTHER PURPOSES........................... $ 2,331,012 $ 2,172,036 $ 247 $ 229


-48-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF CHANGES IN FIDUCIARY NET ASSETSFIDUCIARY FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

PENSION PRIVATETRUST PURPOSEFUNDS TRUST

2010 2009 2010 2009

ADDITIONS

Contributions:Employer................................................................................. 135,254$ 84,927$ $ - $ -Plan members.......................................................................... 41,303 37,188 - -

Total contributions............................................................. 176,557 122,115 - -

Other additions:State insurance contributions.................................................. 8,829 8,901 - - Court fines & penalties........................................................... 1,511 1,456 - - Contributions from other governmental units......................... - 4,286 - - Miscellaneous.......................................................................... 81 186 - - Transfers in............................................................................. 37 - 15 - Loss on sale of capital assets................................................... - - - -

Total other additions.......................................................... 10,458 14,829 15 -

Investment income:Net (depreciation) appreciation

in fair value of investments................................................ 183,280 (77,655) - - Interest..................................................................................... 34,920 42,257 13 17 Dividends................................................................................ 18,140 19,690 - - Rebate of commissions........................................................... 84 169 - - Rental income......................................................................... 2,027 1,874 - - Other miscellaneous................................................................ (2) 8 - -

Total investment income (loss) ......................................... 238,449 (13,657) 13 17 Less investment expense.................................................... (10,256) (10,442) - - Less rental expense............................................................ (351) (205) - - Net investment income (loss)............................................. 227,842 (24,304) 13 17

From Securities Lending Activities:Securities Lending................................................................... 550 2,601 - - Securities Lending Expenses

Interest Expense (returned to borrower)............................ (66) (316) - - Agent Fees.......................................................................... (61) (24) - - Total securities lending activities ...................................... 423 2,261 - -

TOTAL ADDITIONS, NET....................................................... 415,280 114,901 28 17

DEDUCTIONS

Benefits payments......................................................................... 206,716 195,807 - - DROP Benefits............................................................................. 36,806 31,908 - - Refunds of contributions............................................................... 9,272 8,074 - - Transfers out................................................................................. 37 - - - Administrative expenses............................................................... 3,473 2,900 - - Operating expenses....................................................................... - - 10 5

TOTAL DEDUCTIONS............................................................. 256,304 238,689 10 5

CHANGE IN NET ASSETS...................................................... 158,976 (123,788) 18 12

NET ASSETS, BEGINNING OF YEAR.................................. 2,172,036 2,295,824 229 217

NET ASSETS, END OF YEAR................................................. $ 2,331,012 $ 2,172,036 $ 247 $ 229


-49-


-50-

COMPONENT UNITS Component Units are legally separate organizations for which the primary government is financially accountable. Financial accountability is defined as the appointment of a voting majority of the component unit's governing body with certain exceptions, and either (a) the ability to impose will by the primary government; or (b) the potential for the organization to provide financial benefits to, or impose financial burdens on the primary government. The City's major component units follow: MAJOR COMPONENT UNITS:

The JEA manages and operates an electric utility system and a water and sewer utility system in the Consolidated City of Jacksonville/Duval County area.

The Jacksonville Transportation Authority is responsible for construction, improvement, and maintenance of the Jacksonville Expressway System and operation of the City’s mass transit systems, including bus and automated skyway express throughout Duval County.

The Jacksonville Aviation Authority manages and operates the City’s aviation/airport facilities. The Jacksonville Port Authority manages and operates the City’s marine port facilities.

COMPONENT UNITS THAT DO NOT ISSUE A SEPARATE REPORT:

The Jacksonville Housing Finance Authority provides money for loans and technical assistance for construction and rehabilitation of housing to alleviate a shortage of housing and capital for investment in housing in Jacksonville.

The Jacksonville Economic Development Commission provides a focal point for economic development in Jacksonville that results in a centralization of economic development programs.

-51-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF NET ASSETS -COMPONENT UNITS (in thousands)SEPTEMBER 30, 2010

JACKSONVILLE JACKSONVILLE JACKSONVILLETRANSPORTATION AVIATION PORT

JEA AUTHORITY AUTHORITY AUTHORITY ASSETS Cash and cash equivalents......................................................... $ 957,463 $ 58,044 $ 33,918 $ 45,466Cash in escrow with fiscal agent............................................... - - - - Investments................................................................................ 327,054 26,632 58,036 - Due from other governmental agencies..................................... - 64,287 - - Accounts and interest receivable............................................... 253,562 918 4,856 4,728 Mortgages receivable................................................................ - - - - Other receivables....................................................................... - - 11,432 27,295 Inventories................................................................................. 114,940 3,408 745 1,432 Deferred outflows........................................................................... 159,266 - 3,579 2,878 Other assets................................................................................ 153,379 6,725 2,032 19,999 Custodial Assets - Construction projects................................... - 315,649 - - Capital assets:

Land and construction in progress........................................ 345,746 43,371 88,989 237,282 Buildings and improvements................................................ - 145,909 755,864 508,638 Vehicles................................................................................ - 91,804 - - Equipment............................................................................. - 4,064 - 95,574 Utility plant in service.......................................................... 9,845,790 - - - Other capital assets............................................................... - 75,912 1,823 - Less: accumulated depreciation............................................ (3,487,729) (187,107) (298,445) (251,582)

Total capital assets, net of depreciation.......................... 6,703,807 173,953 548,231 589,912 Total assets........................................................................... 8,669,471 649,616 662,829 691,710

LIABILITIESAccounts payable and accrued expenses................................... 234,665 5,246 7,727 10,511 Deposits..................................................................................... 47,448 - - 2,802 Unearned revenue...................................................................... - - - 6,194 Due to other governmental agencies......................................... - 62 - 10,553 Interest payable.......................................................................... 135,185 - 4,186 - Other current liabilities.............................................................. 90,000 - - 28 Liabilities payable with restricted assets................................... - 9,785 - - Long-term liabilities:

Due within one year: Estimated liability for injury and damage claims.............................................................. - 2,176 - - Bonds, notes payable, capital leases and contracts................................................................ 192,433 - 12,603 12,061 Compensated absences.................................................... - 266 - -

Due in more than one year:Estimated liability for injury and damage claims.............................................................. - 1,675 - - Bonds, capital leases and commercial paper......................................................... 6,096,339 - 197,050 191,786 Fair market value of debt management instruments............ 141,943 - 3,579 2,878 Compensated absences.................................................... - 819 - - Custodial projects - due to other governments................ - 335,403 - - OPEB liability................................................................. - - 991 - Other noncurrent liabilities............................................. 118,023 - - 146,477

Total liabilities...................................................................... 7,056,036 355,432 226,136 383,290

NET ASSETSInvested in capital assets, net of related debt............................ 705,722 173,953 350,232 248,863 Restricted for:

Capital projects..................................................................... - - 6,913 14,621 Debt service.......................................................................... - - 21,978 13,303 Other purposes...................................................................... 320,827 - 10,604 2,582

Unrestricted............................................................................... 586,886 120,231 46,966 29,051 Total Net Assets.................................................................... $ 1,613,435 $ 294,184 $ 436,693 $ 308,420


MAJOR COMPONENT UNITS

-52-

JACKSONVILLEJACKSONVILLE ECONOMIC NON MAJOR

HOUSING DEVELOPMENT COMPONENTFINANCE AUTHORITY COMMISSION UNITS TOTAL

$ 7,882 $ 22,518 $ 1,633 $ 1,126,924133 20 - 153

- - 106 411,828 - 64 - 64,351 5 1,392 683 266,144

11,883 - - 11,883 - 42,567 1,728 83,022 - - - 120,525 - - - 165,723

1,590 - 7 183,732 - - - 315,649

- - - 715,388 - - - 1,410,411 - - - 91,804

17 100 12,287 112,042 - - - 9,845,790 - - - 77,735

(17) (99) (577) (4,225,556) - 1 11,710 8,027,614

21,493 66,562 15,867 10,777,548

1,232 980 87 260,448 - 387 - 50,637 - 42,567 - 48,761 - - - 10,615 - - - 139,371 - - - 90,028 - - - 9,785

- - - 2,176

- - - 217,097 1 77 - 344

- - - 1,675

- - - 6,485,175 - - - 148,400 4 179 - 1,002 - - - 335,403 3 43 - 1,037 - - - 264,500

1,240 44,233 87 8,066,454

- 1 11,710 1,490,481

- - - 21,534 - - - 35,281 - - - 334,013

20,253 22,328 4,070 829,785 $ 20,253 $ 22,329 $ 15,780 $ 2,711,094

(continued)

-53-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF ACTIVITIES -COMPONENT UNITS (in thousands)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

PROGRAM REVENUES JACKSONVILLE FINES AND OPERATING CAPITAL JACKSONVILLE HOUSING CHARGES GRANTS AND GRANTS AND TRANSPORTATION FINANCE

FUNCTIONS/PROGRAMS EXPENSES FOR SERVICES CONTRIBUTIONS CONTRIBUTIONS AUTHORITY AUTHORITY

Governmental activities: Jacksonville Transportation Authority $ 63,289 $ - $ - $ - $ (63,289) $ -Jacksonville Housing Finance Authority 502 - - - - (502) Jacksonville Economic Development Commission 19,465 2 12,689 287 - - Non Major Component Units 2,285 1,708 - 2,775 - -

Total governmental activities.............................................. 85,541 1,710 12,689 3,062 (63,289) (502)

Business-type activities:

JEA 1,902,154 1,909,776 - 19,883 - - Jacksonville Transportation Authority 99,521 20,342 10,608 13,664 - - Jacksonville Aviation Authority 78,688 59,279 1,031 10,011 - - Jacksonville Port Authority 68,837 50,636 8,163 9,606 - -

Total business-type activities............................................... 2,149,200 2,040,033 19,802 53,164 - -

Total component units....................................................... $ 2,234,741 $ 2,041,743 $ 32,491 $ 56,226 (63,289) (502)

General revenues:

Sales and tourist taxes.................................................................................. 63,573 - Intergovernmental - unrestricted.................................................................. - -

Unrestricted earnings on investments.......................................................... 112 565 Miscellaneous.............................................................................................. 1,320 584 Total general revenues, special items and transfers..................................... 65,005 1,149

Change in net assets..................................................................................... 1,716 647

Net assets, beginning of year:Net assets, beginning of Year........................................... 110,334 19,606 Changes to beginning Net assets................................. - - Restated beginning Net assets .......................................... 110,334 19,606

Net assets, end of year.................................................................................... $ 112,050 $ 20,253


GOVERNMENTAL ACTIVITIES

-54-

joelp

Typewritten Text

TOTALJACKSONVILLE GOVERNMENTAL

ECONOMIC NON MAJOR JACKSONVILLE JACKSONVILLE JACKSONVILLE AND DEVELOPMENT COMPONENT TRANSPORTATION AVIATION PORT BUSINESS-TYPE COMMISSION UNITS JEA AUTHORITY AUTHORITY AUTHORITY ACTIVITIES

$ - $ - $ - $ - $ - $ - $ (63,289)- - - - - - (502)

(6,487) - - - - - (6,487) - 2,198 - - - - 2,198

(6,487) 2,198 (68,080)

- - 27,505 - - - 27,505 - - - (54,907) - - (54,907) - - - - (8,367) - (8,367) - - - - - (432) (432)

- - 27,505 (54,907) (8,367) (432) (36,201)

(6,487) 2,198 27,505 (54,907) (8,367) (432) (104,281)

- - - - - - 63,573 - - - 46,594 - 46,594

2,084 116 6,103 53 1,549 195 10,777 1,074 81 13,545 - 11,639 7,219 35,462

3,158 197 19,648 46,647 13,188 7,414 156,406

(3,329) 2,395 47,153 (8,260) 4,821 6,982 52,125

25,658 13,385 1,566,282 190,394 431,872 301,438 2,658,969 - - - - - - -

25,658 13,385 1,566,282 190,394 431,872 301,438 2,658,969

$ 22,329 $ 15,780 $ 1,613,435 $ 182,134 $ 436,693 $ 308,420 $ 2,711,094

BUSINESS-TYPE ACTIVITIESGOVERNMENTAL ACTIVITIES

-55-


-56-

CITY OF JACKSONVILLE, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES............................... 60 - 75 A. Basis of Presentation..............................................................................................60 B. Financial Reporting Entity............................................................................. 60 - 65 C. Basic Financial Statements ............................................................................ 65 - 66 D. Fund Structure................................................................................................ 66 - 68 E. Basis of Accounting...............................................................................................69 F. Cash, Cash Equivalents and Investments ........................................................….70 G. Receivables ............................................................................................................70 H. Inventories .............................................................................................................70 I. Capital Assets ........................................................................................................71 J. Contributions .........................................................................................................71 K. Interfund Activity .......................................................................................... 71 - 72 L. Restricted Assets....................................................................................................72 M. Compensated Absences .........................................................................................72 N. Risk Financing .......................................................................................................72 O. Pension Costs .........................................................................................................73 P. Landfill Closure and Postclosure Care Costs .......................................................73 Q. Long-Term Obligations ................................................................................. 73 - 74 R. Categories and Classification of Fund Balance .....................................................74 S. Bond Discounts, Premiums and Issuance Costs ....................................................74 T. Deferred Loss on Debt Refundings........................................................................75 U. Use of Estimates ....................................................................................................75 V. Reclassification......................................................................................................75 W. Summarized Comparative Information..................................................................75 X. Prepaids..................................................................................................................75

2. BUDGETARY DATA.....................................................................................................75 3. CASH, INVESTMENTS AND SECURITIES LENDING ..................................... 76 - 84

A. Cash on Deposit ............................................................................................. 76 - 77 B. Investments and Investment Practices ........................................................... 77 - 83 C. Securities Lending ......................................................................................... 83 - 84

4. ACCOUNTS AND MORTGAGES RECEIVABLE .......................................................85

5. PROPERTY TAXES .......................................................................................................86

A. Ad Valorem Property Taxes ..................................................................................86 B. The Property Tax Calendar....................................................................................86

6. CAPITAL ASSET ACTIVITY................................................................................ 87 - 88

-57-


7. INTERFUND RECEIVABLES, PAYABLES, ADVANCES AND TRANSFERS ............................................................................................89 – 92 8. LONG-TERM OBLIGATIONS ............................................................................ 93 - 109

A. Long-Term Obligations ................................................................................ 93 - 95 B. Debt Service Requirement to Maturity..................................................................96 C. Changes in Long-Term Liabilities ................................................................. 97 - 98 D. Reconciliation of Debt Issued to Financial Reporting Classification....................99 E. Pledged Revenues ...................................................................................... 100 - 101 F. New Indebtedness Issued.....................................................................................101 G. Demand Bonds........................................................................................... 102 - 103 H. Non-Asset Debt....................................................................................................104 I. Defeased Debt......................................................................................................105 J. Derivative Instrument Payments and Hedged Debt................................... 106 - 107 K. Conduit Debt........................................................................................................108 L. Lease Obligations ................................................................................................109 M. Interest Expense...................................................................................................109 N. Component Unit Long-term Debt........................................................................109

9. PENSION PLANS............................................................................................... 110 - 116

A. Summary of Significant Accounting Policies......................................................111 B. Trend and Plan Information ....................................................................... 112 - 113 C. Jacksonville Retirement System Financial Information ......................................114 D. Police and Fire Pension Plan ...............................................................................115 E. Defined Contribution Plan ...................................................................................115 F. Florida Retirement System ..................................................................................116

10. POST EMPLOYMENT BENEFITS OTHER THAN PENSION (OPEB) ......... 117 - 118 11. DEFERRED COMPENSATION PROGRAM AND 401A PLAN...............................119 12. RISK FINANCING ............................................................................................. 119 - 122 13. OTHER REQUIRED INDIVIDUAL FUND AND COMPLIANCE

DISCLOSURES................................................................................................... 123 - 125 A. Compliance with Finance Related Legal and Contractual Provisions.................123 B. Fund Deficits and Excess of Expenditures Over Appropriations ........................123 C. Landfill Closure and Postclosure Care Costs ............................................ 124 - 125

14. LESSOR OPERATING LEASE.......................................................................... 126 - 128

A. Jacksonville Jaguars, Inc............................................................................ 126 - 127 B. Shands Jacksonville .............................................................................................128

-58-


15. LITIGATION, CONTINGENCIES, AND COMMITMENTS ........................... 128 - 134 A. Litigation..............................................................................................................128 B. Grants and Contracts............................................................................................128 C. Self-Insurance ............................................................................................ 128 - 129 D. Pollution Remediation ............................................................................... 129 - 131 E. Shipyards .............................................................................................................131 F. Garage Development Agreement.........................................................................131

G. Other Litigation....................................................................................................132 H. Construction Commitments .................................................................................133 I. Encumbrance Commitments ................................................................................134 16. SUBSEQUENT EVENTS .............................................................................................135 17. MAJOR DISCRETELY PRESENTED COMPONENT UNITS - ADDITIONAL

DISCLOSURE A. JEA.......................................................................................................................136 B. JTA.......................................................................................................................137 C. JPA............................................................................................................. 137 - 138

18. NET ASSETS ......................................................................................................138 – 139 19. FUND BALANCE DISCLOSURE ..................................................................... 140 - 147

A. Fund Balance Classification ...................................................................... 142 - 147

-59-


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the City of Jacksonville, Florida (the City) conform to accounting principles generally accepted in the United States (GAAP) as applicable to governments. The following is a summary of the more significant policies. Notes 1C. through 19 are note disclosures of the primary government with significant disclosures for major component units incorporated within. Additional significant component unit disclosures are presented in Note 17.

A. Basis of Presentation:

The accompanying financial statements of the City have been prepared in conformity with GAAP as prescribed by the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board (FASB), and the American Institute of Certified Public Accountants (AICPA). Under the auspices of GASB Statement No. 20, the City does not apply FASB pronouncements issued after November 30, 1989, for proprietary activities, unless the GASB amends its pronouncements to specifically adopt FASB pronouncements issued after that date. GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles for units of local government.

B. Financial Reporting Entity:

The City is a consolidated city/county political entity created by Chapter 67-1320 of the Laws of Florida. When consolidation occurred on October 1, 1968, all existing municipalities, authorities and public agencies within Duval County, except for the Duval County School Board, were merged into a single new corporate and political entity also known as the City of Jacksonville. At the same time, however, the cities of Jacksonville Beach, Atlantic Beach, Neptune Beach and the Town of Baldwin elected to retain local autonomy for certain municipal purposes and were reconstituted as separate and distinct urban service districts. The consolidated city government, which is comprised of an elected City Council (19 members) and mayor, provides, under the administration of the appointed Chief Administrative Officer, services to approximately 901,000 residents living in an 840.1 square mile area.

To conform to the traditional county organization of government in the State of Florida, the City retained the offices of the Sheriff, Property Appraiser, Tax Collector, Supervisor of Elections, and Clerk of the Circuit Court, which are also elected by the citizenry. These officers are considered to be not only county officers, but also officers of the consolidated government as well, and therefore are considered as part of the primary government. The three beach cities and the Town of Baldwin continue to function as separate municipal governments.

This report includes all funds, departments, agencies, boards and commissions, and other organizational units that are administered by the mayor and/or controlled by or dependent upon the City Council as set forth in the City Charter. The City, a primary government, has also considered for inclusion all potential component units for which it may be financially accountable and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. In GASB Statement No. 14, The Financial Reporting Entity, the GASB has set forth criteria to be considered in determining financial accountability.

-60-


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Financial Reporting Entity: (continued)

These criteria include appointing a voting majority of an organization's governing body and (1) the ability of the City to impose its will on that organization; or (2) the potential for the organization to provide specific financial benefits to or impose specific financial burdens on the City.

As required by GAAP, these financial statements present the City of Jacksonville (the primary government) and its component units. The City has identified and included within the financial reporting entity, as its component units, legally separate organizations for which the City is financially accountable or for which a significant relationship with the City exists such that exclusion would cause the City's financial statement to be misleading or incomplete.

The Jacksonville Public Library Board has been classified as a dependent special district by the State of Florida Department of Community Affairs. Per GASB Statement No. 14, the Library Board is not considered a component unit as it is not a legally separate organization. Therefore, its activity is included as part of the primary government.

Blended Component Unit. There is one component unit, which is legally separate from the City, but is so intertwined with the City that it is, in substance, the same as the City. It is reported as part of the City and blended into the appropriate funds.

The Jacksonville Police and Fire Pension Board of Trustees, created under Article 22 of the City Charter, provides retirement services and benefits to eligible employees of the Office of the Sheriff and the Department of Fire and Rescue. The City appoints two of the five-member board; one member is a police officer; one member is a firefighter; and the remaining member is appointed by the other four members. As sponsor, the City has the ability to modify the plan and to approve the defined benefit contribution to the Police and Fire Pension Board of Trustees in the City's annual budget. The Police and Fire Pension Board of Trustees issues separate financial statements on the fund, which may be obtained from its administrative office at One West Adams Street, Suite 100, Jacksonville, Florida 32202-3616. These transactions are blended in the Fiduciary Funds.

Discrete Component Units. These component units are entities which are legally separate from the City, but are financially accountable to the City, or whose relationships with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The component units are reported separately to emphasize that they are legally separate from the primary government and are governed by separate boards. The footnotes include financial data of these entities. Each component unit listed below has a September 30 fiscal year end.

-61-



Major Component Units

JEA (formerly known as the Jacksonville Electric Authority) was created by Chapter 67-1569 of the Laws of Florida to own, manage, and operate an electric utility system and a water and sewer utility system in the City and any or all counties adjacent thereto. The governing body of the JEA consists of seven members appointed by the mayor and confirmed by the City Council. The City has the ability to impose its will on the JEA manifested principally through formal budgetary approval. The JEA engages only in business-type activities and issues separate financial statements, which may be obtained from its administrative office in the JEA Plaza at 21 West Church Street, Jacksonville, Florida 32202. The Jacksonville Port Authority (JPA) was created by Resolution 2000-1104-A, and was initially called the Jacksonville Seaport Authority. This resolution abolished what was the former Jacksonville Port Authority and created new Seaport and Airport Authorities. However, during fiscal year 2003, the Seaport Authority changed its name back to Jacksonville Port Authority. The governing body of the JPA consists of seven members, four of whom are appointed by the mayor and confirmed by the City Council, and three of whom are appointed by the Governor. The City can impose its will on the JPA through modification and approval of its budgets, which ensures strong accountability to the local constituent citizenry. The JPA engages only in business-type activities and issues separate financial statements. Requests for information may be addressed to the Chief Financial Officer, Jacksonville Port Authority, P.O. Box 3005, Jacksonville, FL 32206-0005. The Jacksonville Aviation Authority (JAA) was created by Resolution 2000-1104-A, which abolished what was the former Jacksonville Port Authority (JPA). The former JPA was created in 1963 by Chapter 63-1447 of the Laws of Florida, to own and operate marine and aviation facilities in the Consolidated City/County Government of Jacksonville/Duval County. These state laws were repealed and separate seaport and airport authorities were established. The governing body of the JAA consists of seven members, four of whom are appointed by the Governor, and three of whom are appointed by the mayor and confirmed by the City Council. The JAA is fiscally dependent upon the City because the City Council approves and modifies the JAA budget. The JAA engages only in business-type activities and issues separate financial statements. Requests for information may be addressed to the JAA Administrative Office at P.O. Box 18018, Jacksonville, Florida 32229-0018. The Jacksonville Transportation Authority (JTA) is a public body politic and corporate agency of the State of Florida under Chapter 349 of the Florida Statutes. The governing body of the JTA consists of seven members, three of whom are appointed by the governor of Florida, three of whom are appointed by the mayor and confirmed by the City Council, and the seventh member is the district engineer of the Florida Department of Transportation.

-62-



The JTA is empowered to construct, improve, operate and lease the Jacksonville Expressway System. The JTA is, however, fiscally dependent upon the City under Section 14 of the City Charter through approval of its budgets which ensures strong accountability to the local constituent citizenry. The JTA engages in both governmental and business-type activities and issues separate financial statements, which may be obtained from its administrative office at 100 North Myrtle Avenue, Jacksonville, Florida 32203. Component Units that do not issue a separate report

The Jacksonville Housing Finance Authority (JHOFA), formerly known as the Duval County Housing Finance Authority ( DCHFA), was created by City Ordinance 2003-1058, to alleviate a shortage of housing and capital investment for the people of Duval County, pursuant to Florida Statutes, Section 159.604. The mayor appoints three of the five board members. The City has the ability to impose its will on the JHOFA. The JHOFA operates in conjunction with the Jacksonville Housing Commission, also created by Ordinance 2003-1058, and has the rights and duties necessary under Florida Statutes, Chapter 159, Part IV, to preserve outstanding debt, issue new debt and to shield the City from financial liability. The bonds issued and outstanding are included in Note 8K. Conduit Debt. The JHOFA engages only in governmental activities. There are no separately issued financial statements for the JHOFA, whose financial activity is accounted for by the City. The JHOFA financial statements are presented in the financial section of the City report.

The Jacksonville Economic Development Commission (JEDC), created July 1, 1997, under Chapter 92-341, Laws of Florida, provides a focal point for economic development in the City that results in a centralization of economic development programs under the auspices of one agency, thus ensuring a more efficient and practical means of addressing the goals, objectives and strategies for future economic development in the City. The JEDC operates with all the powers and authority of a community redevelopment agency under Part III, Chapter 163, Florida Statutes and as an industrial development authority under Part III, Chapter 159, Florida Statutes. The mayor appoints the board members and the chairman, who are confirmed by the City Council, and the City has the ability to impose its will. The JEDC engages only in governmental activities. There are no separately issued financial statements for the JEDC, whose financial activity is accounted for by the City. The JEDC financial statements are presented in the financial section of the City report.

-63-



Non-major Component Units Downtown Vision, Inc. (DVI) was established as a not-for-profit corporation under the Laws of Florida in 1997. DVI was created to provide community enhancements in the downtown area, with associated costs assessed to the properties benefited. The assessment is levied and collected by the City in accordance with the Enhanced Municipal Services Agreement, and was approved by City Ordinance 1999-1175-E. Therefore, DVI is fiscally dependent on the City. The DVI is governed by a 15-member Board of Directors, of which two are City representatives. The enhanced services are provided to property owners within several of the City's Downtown Community Redevelopment areas, including some properties owned by the City. DVI engages only in governmental activities and issues separate financial statements, which may be obtained from its main office at 214 North Hogan Street, Suite 120, Jacksonville, Florida 32202. The Jacksonville Health Facilities Authority (JHFA), created under Chapter 490 of the City Ordinance Code pursuant to Chapter 154 Part III, Laws of Florida, provides appropriate additional means to assist in the development, improvement and maintenance of the public health. The JHFA provides a method for the financing and refinancing, on a tax-exempt basis, of projects on behalf of private corporations and organized not-for-profits that are authorized by law to provide hospital or nursing home services, thus providing facilities at favorable interest costs with a resultant decrease in health care costs for the users of health facilities within the City. All five members are appointed by the City Council, and the City is able to impose its will on the JHFA.

The bonds issued by the JHFA are special limited obligations of the JHFA and the principal and interest are payable from rental payments. The principal and interest on the bonds shall never constitute an indebtedness of the City of Jacksonville, Duval County, the State of Florida or any municipality or political subdivision thereof. Accordingly, the bonds issued and outstanding are included in Note 8K Conduit Debt. During the fiscal year presented, JHFA had no financial transactions or assets and liabilities to report. Therefore, there are no separately issued financial statements for JHFA. The Water and Sewer Expansion Authority (WSEA) was created by City Ordinance 2003-586-E to allow property owners an opportunity to finance water and/or sewer infrastructure in their existing developed neighborhoods on a voluntary basis. The governing body of the WSEA consists of seven members appointed by the mayor and confirmed by the City Council. The City has the ability to impose its will on the WSEA principally through the mayor’s ability to remove board members with two-thirds approval vote from the City Council, and the City Councils authority to review and approve the WSEA annual budget. WSEA issues separate financial statements, which may be obtained from its administrative office 21 West Church Street, T - 16 Jacksonville, Florida 32202.

-64-



Related Organizations

The Jacksonville Housing Authority (JHA) is governed by a seven member board, whose members are appointed by the mayor and confirmed by City Council. However, the City does not have the ability to impose its will on JHA. The City cannot remove appointed members of the JHA Board at will. JHA managers are appointed by the JHA Board of Directors. The Board approves the operating budget and amendments to the budget. The City does not exercise influence in JHA management or operations. It does not approve JHA budgets, and does not provide or collect major revenues of the JHA. Accordingly, the financial activities of the JHA are not included in the City's financial statements.

The Duval County Research and Development Authority (Authority) is governed by a five member board whose members are appointed by the City Council. However, the City does not have the ability to impose its will on the Authority. The City does not exercise influence in the management or operations of the Authority and is not financially accountable for the actions of the Authority. Accordingly, the financial activities of the Authority are not included in the City's financial statements.

Jointly Governed Organization An Interlocal Agreement was entered into on February 27, 2004, by and between the Florida Department of Transportation, the Counties of Clay, Duval, and St. Johns, the cities of Jacksonville, Atlantic Beach, Jacksonville Beach, Neptune Beach and St. Augustine, the Jacksonville Aviation Authority, the Jacksonville Port Authority, the Jacksonville Transportation Authority and the St. Augustine/St. Johns County Airport Authority to redesignate as the First Coast Metropolitan Planning Organization (FCMPO). Pursuant to Section 339.175(3), Florida Statutes, by letter to Mayor John Peyton, the governor agreed to the apportionment plan of newly proposed members. The City Council no longer serves as the MPO Board. The mayor, three Jacksonville City Council Members and various other leaders of the involved agencies, make up the 16 member board, with three members being non-voting. The City does not have an ongoing financial interest or responsibility to the FCMPO. However, since the board includes members from each of the governments that created it, the FCMPO is considered a jointly governed organization of the City.

C. Basic Financial Statements: The basic financial statements include both citywide and fund level statements. The City, as the primary government, is reported separately from its component units. The citywide statements report on all of the activities of the City and its component units except those that are fiduciary in nature.

-65-


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Basic Financial Statements: (continued)

Statements for fiduciary activities, such as employee pension plans, are presented in a separate section of this report. Both the citywide and fund level statements classify primary activities of the City as either governmental activities, which are primarily supported by taxes and intergovernmental revenues, or business type activities, which are primarily supported by user fees and charges.

The citywide statement of net assets reports all assets and liabilities of the City, including both long-term assets and long-term debt and other obligations. The statement of activities reports the degree to which direct expenses of City functions are offset by program revenues, which include program specific grants and charges for services provided by a specific function. Direct expenses are those that are clearly identifiable with a specific function or program. The net cost of these programs is funded from general revenues such as taxes, intergovernmental revenue and interest earnings.

The fund level statements report on governmental, proprietary and fiduciary fund activities. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund level financial statements.

Since the fund level statements for governmental activities are presented using a different measurement focus and basis of accounting than the citywide statements governmental column (as discussed under Basis of Accounting in this summary of significant accounting policies), a reconciliation is presented on the page following each governmental fund financial statement which briefly explains the adjustments necessary to convert the fund level statements into the citywide governmental column presentations.

As a general rule, the effect of interfund activity has been eliminated from the citywide financial statements.

D. Fund Structure:

The City's accounts are maintained in accordance with the principles of fund accounting to ensure compliance with limitations and restrictions placed on the use of resources available to it. Under fund accounting, individual funds are established for the purpose of carrying on activities or attaining objectives in accordance with specific regulations, restrictions or limitations. Each individual fund is a self-balancing set of accounts recording assets, liabilities and residual equities or balances and revenues, expenditures / expenses and changes therein. For financial statement presentation, funds with similar characteristics, including those component units referenced above, are grouped into generic classifications as required by GAAP. A brief description of these classifications follows:

Governmental Funds. These funds report transactions related to resources received and used for those services traditionally provided by city/county government. The following are major governmental funds used by the City:

-66-


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

D. Fund Structure: (continued)

General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service Funds:

The Special Bonded Debt – Better Jacksonville Plan Obligations Fund accounts for the accumulation of resources for, and the payment of, principal and interest on the City’s special bonded obligations payable, which are related to the Better Jacksonville Plan.

The Special Bonded Debt Obligations Fund accounts for the accumulation of resources for, and the payment of, principal and interest on the City’s special and limited bonded obligations, which are payable solely from and secured by a lien upon and pledge of the revenues under the respective bond ordinances.

Capital Project Funds: The General Projects Fund receives monies appropriated from the General Fund and other sources including proceeds from non-bonded debt for general capital improvements. . Other Non-major Governmental Funds: This is the aggregate of all of the non-major governmental funds.

Proprietary Funds. These funds report transactions related to activities similar to those found in the private sector. Major proprietary funds include:

Solid Waste Disposal Fund - This fund accounts for the collection, recycling, and disposal of commercial and residential garbage services throughout the City, including operation of three municipally owned landfill sites, two of which are closed. The EverBank Field Fund accounts for events held at the stadium including National Football League and college football games, concerts and other activities. The Veterans Memorial Arena Fund accounts for events held at the arena including concerts, college basketball games, and other entertainment events such as the circus, ice skating, gymnastics, professional wrestling and motor sports.

Other Non-major Enterprise - This is the aggregate of all of the non-major enterprise funds.

-67-


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Fund Structure: (continued)

Proprietary funds distinguish operating revenues and expenses from non-operating revenues and expenses. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the funds' principal ongoing operation. The principal operating revenues for the City's enterprise funds are charges to customers for sales and services. Operating expenses include direct expenses of providing the goods or services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

In addition, the City reports the following fund types:

Internal Service Funds - These funds account for services provided primarily to various departments of the City and to other governmental agencies. Since these funds principally service City departments, internal service fund statements are consolidated into the governmental activities column in the citywide presentations. These activities are fleet management, copy center, data processing, legal, various risk management activities and internal banking fund. Services provided to other governmental agencies are not considered to be material.

Private-purpose Trust Funds - These funds account for resources legally held in trust for the benefit of individuals pursuing higher education in music and urban studies. Earnings on invested resources may be used to support these activities but no expenditure may be made from the principal of these funds.

Pension Trust Funds - These funds account for the activities of the Jacksonville Retirement System and the Police and Fire Pension funds, which accumulate resources for pension benefit payments for qualified employees. Permanent Fund - This fund is used to account for activities of the City relative to cemetery maintenance at specified locations. Fund resources are restricted. Only earnings on invested resources may be used to support these activities.

Agency Funds - These custodial funds account for monies held as an agent for other governmental units or individuals. The City utilizes several agency funds including the Treasurer Fund to clear cash received and disbursed, Tax Collector Fund accounts for the collection of all taxes, revenues and other cash, Clerk of the Circuit Court Fund accounts for revenues collected by the court system, Plat Deposits Fund accounts for collateral to insure the completion of public improvements, Duval County School Readiness Coalition Fund accounts for similar collections, Florida Retirement System Fund accounts for a multiple-employer, cost-sharing defined benefit plan for certain City employees who elected to remain with the State of Florida Retirement System.

-68-


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Basis of Accounting:

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The citywide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary pension trust fund financial statements. Agency funds are accounted for using the full accrual basis of accounting. Agency funds are custodial in nature (i.e. assets equal liabilities) and do not measure the results of operations. Under this method, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenue in the year in which they are levied for. Grants and similar items are recognized as revenue when all eligibility requirements imposed by the provider are met.

Governmental fund financial statements are reported using a current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e. when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenues that are determined to be susceptible to accrual include property taxes, taxpayer-assessed tax revenues including sales and utilities services taxes, state shared revenue, intergovernmental revenue, charges for services and investment income. Generally, the City considers a 60-day availability period for revenue recognition. Federal grants collected on a reimbursement basis are recognized as revenue when reimbursable expenditures are made, and the City considers amounts received within one year as available. Expenditures are recorded when the related fund liability is incurred, except for items that are not planned to be liquidated with expendable available resources. Exceptions to the general modified accrual expenditure recognition criteria include capital lease obligations, which are recognized when paid, and payments for compensated absences, pension, OPEB (other post employment benefits), and claims and judgments which are recognized when due.

The City's policy is to use restricted resources first, then unrestricted resources, when both are available for use to fund an activity.

-69-



F. Cash, Cash Equivalents, and Investments: Cash, cash equivalents and investments and related accrued investment earnings are reported in the financial statements as "Equity in cash and investments" under the City’s "pooling" concept. (See Note 3.) All monies, which are not legally restricted to separate administration, are pooled together for investment purposes while each individual fund and/or account is maintained on a daily transaction basis by the City Treasurer. Cash in escrow with fiscal agents is not included in cash flow statements ending balances as the funds have been sent to trustee entities to be held for payment of bond principal and interest. Investment earnings are distributed in accordance with the participating funds' relative percentage of investments. All fund types deposit monies into the equity in cash and investments pool of the City. The Proprietary Fund types use this pool as a demand deposit account, and accordingly all amounts in the pool are considered cash and cash equivalents for purposes of the Statement of Cash Flows. Investments are stated at fair value generally based on quoted market prices except as disclosed herein. Securities, traded on national or international exchanges, are valued at the last reported sales price at current exchange rates. The fair value of real estate investments are based on independent appraisals or estimates of fair value as provided by third party fund managers. Investments that do not have an established market are reported at estimated fair value as provided by third party fund managers. Increases and decreases in the fair value of investments are reported as investment income. The City of Jacksonville’s swap policy allows for the use of interest rate swaps and other financial instruments to manage the City’s financial exposure. This policy went into effect on October 1, 2003 and was revised on November 9, 2007. While the City is authorized to utilize interest rate swaps to manage the interest rate risk associated with various assets, no investment interest rate swaps were used during the reporting period.

G. Receivables: Receivables are stated net of estimated allowances for uncollectible amounts, which are determined, based on past collection experience and current economic conditions. Types of receivables include amounts that are principally due from the State of Florida for state-shared revenues. Receivables in other funds have arisen in the ordinary course of business.

H. Inventories:

Inventories of materials and supplies are determined by both physical counts and through perpetual inventory systems stated at cost, which approximates market, using the average weighted costing method. Reported inventories in governmental funds are included within nonspendable fund balance because it is not in spendable form. In proprietary fund types, inventories are expended when consumed.

-70-



I. Capital Assets: All purchased capital assets are recorded at cost where historical records are available and at estimated cost where no historical records exist. Donated capital assets are valued at their estimated fair market value on the date received. Generally, assets costing $1,000 or more and having a useful life of more than one year are capitalized. Infrastructure is capitalized based on the accumulated amounts charged to specific capital projects on an annual basis. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are reported in the applicable governmental or business-type column in the city-wide financial statements, and in the proprietary fund level statements. The City capitalizes collections, such as artwork and library books. The City has a collection of artwork in various sites throughout the interior and exterior of public facilities. The value of the art is expected to either remain the same or increase over time, so it is not depreciated. Starting in fiscal year 2010, the City implemented GASB Statement 51, and began capitalizing right of way easements as intangible assets. The City was previously capitalizing software as an accounting best practice. Software development is capitalized if over a threshold of $30,000.

Depreciation on all capital assets is calculated using the straight line method over the following useful lives:

Infrastructure - other 12 - 50 years Infrastructure - bridges 100 years

Buildings and improvements 12 - 45 years Furniture, equipment and library books 3 - 10 years Software development 10 years

J. Contributions: Contributions in the form of cash and capital assets to the governmental activities of the City are recognized on the Statement of Activities as revenues in the period they are received. Contributions of capital assets, primarily completed infrastructure from developers, are recognized at the fair value at the date of donation. All contributions are reported on the Statement of Activities as program revenues, with operating contributions reported separately from capital contributions.

K. Interfund Activity:

Interfund activity within and among the City’s three fund categories (governmental, proprietary, and fiduciary) are classified as reciprocal interfund activity and nonreciprocal interfund activity. Reciprocal interfund resource flows between funds with an expectation of repayment are reported as interfund receivables and payables.

-71-


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) K. Interfund Activity: (continued)

Reciprocal interfund resource flows, without an expectation of repayment within a reasonable time, are reported as transfers between funds. Interfund services provided and used are sales and purchases of goods and services between funds for a price approximating their external value and are reported as revenues and expenditures (or expenses) in the funds. Nonreciprocal interfund activities are flows of assets between funds without an equivalent flow of assets in return or without a requirement for repayment are reported as transfers in governmental funds and nonoperating revenues and expenses in proprietary funds.

L. Restricted Assets: Assets are reported as restricted in the citywide Statement of Net Assets and the enterprise fund level statements when constraints are placed on net asset use. The constraints are either: (1) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (2) imposed by law or through constitutional provisions or enabling legislation.

M. Compensated Absences: City employees may accumulate earned personal leave benefits (compensated absences) at various rates within limits specified in collective bargaining agreements. This liability reflects amounts attributable to employee services already rendered, cumulative, probable for payment, and reasonably estimated in conformity with GASB Statement No. 16, Accounting for Compensated Absences. Compensated absences liabilities are accrued when incurred in the city-wide financial statements, and the proprietary and fiduciary fund level financial statements. No expenditure is reported in the governmental funds for these amounts until the payment is made. No liability is recorded for nonvesting, accumulated sick pay benefits. Compensated absences liability is determined based on current rates of pay.

N. Risk Financing: Pursuant to Florida Statute 768.28 “Sovereign Immunity” the City is self-insured for general and automobile liability for state tort claims in excess of $100,000 per person, and $200,000 per occurrence. The City’s self-insured retention is up to $1.2 million per occurrence for workers compensation. The liability for self-insured losses is based on individual case estimates for reported claims, historical loss data and valuations performed by independent actuaries at September 30, 2010, for incurred but not yet reported claims, claims development, and unallocated loss adjustment expenses. The liability for self-insured losses is accounted for in the Self-Insurance Fund (internal service fund) that pays for claims made against the City. The City has an excess liability policy which provides coverage for general liability at limits of $1 million per occurrence and $3 million in the aggregate, subject to a $5 million self-insured retention; and employer’s liability with $3 million in the aggregate with a self-insured retention per occurrence of $1.2 million.

-72-



O. Pension Costs: Substantially all permanent, full-time employees of the City are covered under two City-sponsored defined benefit pension plans and a City-sponsored defined contribution plan. Employer contributions are recorded as pension expenditure/expenses when the related payroll is accrued based on an actuarially determined rate in accordance with GASB Statement No. 27, Accounting for Pensions by State and Local Governments.

P. Landfill Closure and Postclosure Care Costs: The City recognizes municipal solid waste landfill closure and postclosure care costs under the State of Florida's Solid Waste Management Act of 1988 regulations of the Federal Environmental Protection Agency (EPA), and GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs. For those landfills that stopped accepting solid waste prior to final implementation of the 1988 Act and EPA regulations, the total cost of municipal solid waste landfill (MSWLF) closure is recognized as a deferred charge in the Solid Waste Disposal Enterprise Fund, in accordance with SFAS Statement No. 71, Accounting for the Effects of Certain Types of Regulation, (SFAS 71). The City issued bonds to pay for closure costs on closed landfills. Post-closure care costs on closed landfills are recorded as a liability based on engineer’s estimates. The City Council establishes rates that are designed to recover costs and believes it is reasonable to assume that such rates, which will recover the costs, can be charged to and collected from customers. Accordingly, the provisions of SFAS 71 are applied. The City intends to recover these MSWLF costs through future operating revenues of the Solid Waste Disposal Enterprise Fund. Accordingly, MSWLF costs are recognized as expense each year to match the flow of revenue and bonds principal payments, thereby reducing the deferred charge. Expenses for closure and postclosure care costs are recorded each year and the liability is adjusted to the engineer’s estimate. MSWLF closure and postclosure care costs incurred for landfills accepting solid waste after final implementation of the 1988 Act and EPA regulations are recognized as an expense. A liability is recorded based upon the landfill capacity used during that year applied to the engineer’s estimate of closure and postclosure care costs. (See Note 13.C.)

Q. Long-Term Obligations: In the city-wide financial statements, and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary funds statement of net assets.

Special obligation bonds, which are supported by certain general revenues (other than ad valorem taxes), do not constitute a debt of the City within the meaning of any constitutional or statutory limitation or provision, and the City is not obligated to pay the bonds except from revenues pledged for such purposes.

Each governmental fund that has long-term liabilities, such as, compensated absences and pension liabilities is responsible for liquidating the same.

-73-


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Q. Long-Term Obligations: (continued)

Non Asset Bonds are created when the City issues debt and either (a) constructs an asset which will become the asset of another entity (e.g. State of Florida), (b) contributes proceeds to another entity (e.g. Shands Jacksonville Hospital) to participate in a construction project, or (c) provides an economic incentive to a development or redevelopment project. Part of the Better Jacksonville Plan (BJP) referendum was to make improvements to state roads and/or interchanges with/between state roads. While these projects enhance traffic movements in and around Jacksonville, the constructed assets and the future maintenance responsibility are transferred to the Florida Department of Transportation. Additionally, under the BJP program, the City provided for non-capital expenditures, such as septic tank remediation and ash clean up, from debt proceeds, which will not result in a capital asset of the City. The City has also provided grants to Shands Jacksonville Hospital, a provider of health care for indigents, from debt proceeds. The City and/or its Community Redevelopment Authority (CRA) districts, to encourage target development, will enter into incentive agreements (including grants and loans) which are in some instances designed to be repaid by either the CRA’s tax increment revenues and/or the developer.

R. Categories and Classification of Fund Balance: The City of Jacksonville has elected early implementation of GASB 54. This statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications, under GASB 54, are Nonspendable, Restricted, Committed, Assigned, and Unassigned. These classifications reflect not only the nature of funds, but also provide clarity to the level of restriction placed upon fund balance. Fund Balance can have different levels of restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. For further details of the various fund balance classifications refer to Note 19.

S. Bond Discounts, Premiums and Issuance Costs: In the fund financial statements, governmental funds recognize bond discounts, premiums and issuance costs in the current period. The face amount of debt issued and bond premiums are reported as other financing sources while discounts on debt issuance are reported as other financing uses. Issuance costs, whether or not withheld from the debt proceeds received, are reported as debt service expenditures.

In the city-wide financial statements and for proprietary funds, material bond discount, premium and issuance costs are deferred and amortized as a component of interest expense over the term of the bonds using the straight-line method, which approximates the effective interest method. Issuance costs are recorded as deferred charges and bond discount/premium are included in Long-Term Liabilities - Revenue Bonds.

-74-



T. Deferred Loss on Debt Refundings: Losses resulting from advance refundings of debt in the city-wide and proprietary fund statements are deferred and amortized over the shorter of the life of the new debt or the remaining life of the old debt. The amount deferred is reported as a component of Long-Term Liabilities in the accompanying financial statements and is amortized and reported as a component of interest expense.

U. Use of Estimates: The preparation of financial statements, in accordance with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates.

V. Reclassifications: Certain 2009 amounts have been reclassified to conform with the 2010 presentation. Additionally, amounts in the separately issued financial statements of component units have been reclassified to conform to the presentation of the primary government.

W. Summarized Comparative Information:

The basic financial statements include certain prior-year summarized comparative information in total but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended September 30, 2009, from which the summarized information was derived. Limited 2009 comparative information was adjusted for comparability on some of the financial statements.

X. Prepaids: Prepaid items consist of certain costs which have been paid prior to the end of the fiscal year, but represent items which are applicable to future accounting periods. These amounts do not constitute available spendable resources even though they are a component of current assets. Prepaids are processed using the consumption method.

2. BUDGETARY DATA The City presents a Budgetary Comparison Schedule for the General Fund as Required Supplementary Information. For this reporting period, no special revenue funds met the major fund criteria. The City’s budgetary comparison reporting and Notes to Required Supplementary Information containing descriptions of the City’s budgetary policies and processes are included in the Required Supplementary Information section of this report.

-75-


3. CASH, INVESTMENTS AND SECURITIES LENDING A. Cash on Deposit

The City maintains a cash and investment pool that is available for use by all funds except for monies legally restricted to separate administration (i.e. pension plan custodians and deferred compensation plan administrators). The “Equity in cash and investments” on the City Wide Financial Statements, consists of cash and investments owned by each fund and defined as resources that can be liquidated without delay or penalty. Cash and investments held separately where contractual arrangements and bond covenants require such arrangements, are classified as “restricted assets.” Investment earnings are allocated to the individual funds monthly based on the funds’ weighted average daily cash balance.

(in thousands)Primary Government: Cash and Cash Equivalents $234,992 Cash in escrow and with fiscal agents 123,610 Investments - Primary Government 552,965

Primary Government Total: 911,567Pension and Agency Funds: Cash and Cash Equivalents Pension Trust Funds 47,511 Private Purpose Trust Funds 247 Agency Funds 37,977 Investments - Pensions 2,480,531

Pension and Agency Total: 2,566,266Component Units: Cash and Cash Equivalents 1,126,924 Cash in escrow and with fiscal agents 153 Investments - Component Units 411,828

Component Unit Total: 1,538,905

Total Cash and Investments: $5,016,738

Investments Schedules: Operating Portfolio $964,793 Pension Portfolio 2,480,531 Sub-total: 3,445,324Other Cash/Investments: Cash 964,559 Cash with Fiscal Agent 123,691 Restricted Funds 483,164 Total Cash and Investments: $5,016,738

CASH and INVESTMENTS September 30, 2010

-76-


3. CASH, INVESTMENTS AND SECURITIES LENDING A. Cash on Deposit (continued) 1. Custodial Credit Risk

At September 30, 2010, primary government deposits in financial institutions totaled $268.9 million. Monies on deposit with financial institutions in the form of demand deposit accounts, time deposit accounts and certificates of deposit are defined as public deposits. All of the City’s public deposits are held in qualified public depositories pursuant to State of Florida Statutes, Chapter 280, “Florida Security for Public Deposits Act”, and covered by federal depository insurance. For amounts in excess of such federal depository insurance the Act provides that all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, times the depository’s collateral pledging level. The pledging level may range from 50% to 125% depending upon the depository’s financial condition and establishment period. The Public Deposit Security Trust Fund has a procedure to allocate and recover losses in the event of a default or insolvency. When public deposits are made in accordance with Chapter 280, no public depositor is liable for any loss thereof. Any losses to public depositors are covered by applicable deposit insurance, sales of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default.

B. Investments and Investment Practices 1. General Operating Investments

The City’s operating fund investment guidelines are defined by City Ordinance Code Section 110, Part 2 and a written Investment Policy (the “Policy”) as approved by City Council. The Policy establishes a diversified investment strategy, both by type of investment and by manager, a minimum credit quality, and duration limitations. An internal Investment Committee has oversight, within Policy limits, of the implementation and direction of investment strategies. The Policy is reviewed annually for any adjustments due to changes or developments within the investment markets that may provide enhanced investment and/or risk management opportunities for the City. Other than operating cash invested overnight through the City’s zero balance sweep accounts, all invested cash is managed by third-party money managers. Within the aggregate portfolio, the Policy establishes a Liquidity Portfolio which is required to contain not less than 15% of the aggregate portfolio, and an Active Portfolio containing funds not earmarked to the Liquidity Portfolio. Performance benchmarks for the Liquidity and Active Portfolios are established in the Investment Policy and performance benchmarks for each of the specific third party managers are established by the Investment Committee. The Policy defines the Average Duration and Compliance Categories for investments. Compliance Category limits are stated as a percentage of the 2009-10 Normal Portfolio Balance of $686 million, which is defined by Ordinance as the average total portfolio balance for the proceeding twelve months.

-77-


3. CASH, INVESTMENTS AND SECURITIES LENDING B. Investments and Investment Practices (continued) 1. General Operating Investments (continued)

Performance and compliance reports are submitted to the Investment Committee monthly, and to the Finance Committee quarterly. The City employs an independent investment custodian who takes direction from the money managers and independently settles all trades. The custodian provides performance and compliance reporting at both the portfolio level and by individual manager. The following schedule reports portfolio compliance at year end, as well as the maximum exposure for each compliance category during the year. Certain compliance categories include assets also measured in another compliance category, i.e. “US Government” issued treasury bonds are also appropriately included in the “US Government plus agencies” category. As a result, the amounts reported as year end compliance exposures exceed the portfolio balance at year end in aggregate.

Compliance GuidelineExposure to Specific

Guideline Year end

Exposure % During Year By Policy

Duration1 3.19 N/A 3.19 5.00

Liquidity 239,464,593$ 34.9% 34.9% 100.0%

RequirementsUSG + Agencies 166,505,850$ 24.3% 28.3% 100.0%US Govt (USG) 86,082,420 12.5% 24.3% 100.0%

ConstraintsAgencies 80,423,430$ 11.7% 14.6% 45.0%MBS 74,795,775 10.9% 12.7% 35.0%Agency MBS 40,638,112 5.9% 6.8% 35.0%Non-Agency MBS 34,157,663 5.0% 6.9% 15.0%Corporates 238,776,462 34.8% 37.2% 60.0%Corporates > 1 Year 135,775,272 19.8% 37.2% 40.0%Municipal Bonds 1,483,286 0.2% 0.2% 10.0%Bond Funds 126,698,063 18.5% 26.1% 85.0%Money Market Funds 26,982,354 3.9% 25.2% 40.0%Certificates of Deposit - 0.0% 0.2% 20.0%Repurchase agreements - 0.0% 0.0% 20.0%

Specialty RiskHigh Yield 29,248,176$ 4.3% 6.3% 7.5%International 36,273,777 5.3% 5.3% 7.5%Emerging Market 10,614,747 1.5% 1.5% 7.5%Duration > 8.5 38,169,982 5.6% 6.1% 7.5%

1Commingled Funds and Cash are excluded

2Normal Portfolio Balance 686,000,000$

Maximum% of Normal Portfolio Balance

Sector Guideline Exposures

-78-


3. CASH, INVESTMENTS AND SECURITIES LENDING B. Investments and Investment Practices (continued)

2. Pension Plan Investments The City’s two separate defined benefit pension plans are the Jacksonville Retirement System and the Police and Fire Pension Plan. Investments in the City’s two plans are governed by state statute and locally adopted investment policies. These policies establish investment objectives and guidelines for the portfolio as a whole, for each individual manager, as well as by instrument and issuer. The following schedules are presented for only the Jacksonville Retirement System investments:

Equities Bonds Other Cash Total PercentageEquity (Domestic) 597,397,195$ -$ 599,827$ 17,397,838$ 615,394,860$ 41% Large Cap Value 137,527,074 - 174,300 7,104,063 144,805,437 10% Large Cap Growth 155,138,144 - 110,220 3,396,415 158,644,779 10% Large Cap Core 169,087,639 - 238,982 1,110,494 170,437,115 11% Small Cap Value 35,148,694 - 18,562 689,369 35,856,625 3% Small Cap Growth 70,696,042 - 26,722 4,472,959 75,195,723 5% Small Cap Core 29,799,602 - 31,041 624,538 30,455,181 2%

Equity (International) 255,372,474$ -$ 640,749$ (123,808)$ 255,889,415$ 17% Value 137,796,877 - 253,344 - 138,050,221 9% Growth 98,873,266 - 387,405 (123,808) 99,136,863 7% Core 18,702,331 - - - 18,702,331 1%

Bonds* -$ 505,955,344$ 2,665,738$ (11,882,044)$ 496,739,038$ 33% Intermediate - 349,779,871 2,665,738 (11,882,589) 340,563,020 23% Aggregate - 156,175,473 - 545 156,176,018 10%

Cash Account -$ -$ (1,306,574)$ 5,497,685$ 4,191,111$ 0%

Other 12,137,556$ -$ 129,802,672$ 980,197$ 142,920,425$ 9% Real Estate 12,137,556 - 129,802,672 980,197 142,920,425 9%

Total investments 864,907,225$ 505,955,344$ 132,402,412$ 11,869,868$ 1,515,134,849$ 100%

Less: Amount reported as receivables (4,029,420)

Total Investments less receivables 1,511,105,429$

*Duration of bond portfolio is 4.24 years

Jacksonville Retirement SystemDistribution by Asset Type

9/30/2010

-79-



2. Pension Plan Investments (continued)

Equities Bonds Other Cash Total PercentageEquity (Domestic) 414,967,279$ -$ -$ 7,934,756$ 422,902,035$ 44% Large Cap Value 83,249,852 - - 1,538,869 84,788,721 9% Large Cap Growth 82,870,300 - - 2,469,344 85,339,644 9% Large Cap Core 134,946,720 - - 350,970 135,297,690 14% Small Cap Value 61,794,350 - - 2,651,349 64,445,699 7% SMID Cap Growth 52,106,057 - - 924,224 53,030,281 5%

Equity (International) 206,333,368$ -$ -$ 3,491,702$ 209,825,070$ 22% Value 65,115,022 - - 3,491,702 68,606,724 7% Growth 70,034,728 - - - 70,034,728 7% Emerging Markets 71,183,618 - - - 71,183,618 7%

Bonds -$ 253,702,686$ -$ (9,561,474)$ 244,141,212$ 25% Intermediate - 94,366,525 - (16,285,208) 78,081,317 8% Aggregate - 159,336,161 - 6,723,734 166,059,895 17%

Cash Account -$ -$ -$ 4,414,055$ 4,414,055$ 0%

Other -$ -$ 85,987,179$ -$ 85,987,179$ 9% Real Estate - - 85,987,179 - 85,987,179 9%

Total investments 621,300,647$ 253,702,686$ 85,987,179$ 6,279,039$ 967,269,551$ 100%

Less: Amount reported as receivables (2,680,484)

Total Investments less receivables 964,589,067$

Police and Fire Pension FundDistribution by Asset Type

9/30/2010

3. Portfolio Performance Investment performance is measured against comparable indices that are consistent with the City’s Investment Policy Statements, market opportunities, and liquidity/cash flow requirements. The following schedule includes the actual fund returns, as well as market indices to gauge relative performance.

-80-



3.Portfolio Performance (continued)

FY 2010

FY 2009

FY 2008

FY 2007

FY 2006

3 - Year Average

5 - Year Average

Operating Fund ( All Fixed Income) * 8.14 11.72 1.33 5.04 4.05 6.97 6.00Policy Benchmark (Weighted Avg Benchmark)** 4.81 6.74 4.40 NA NA 5.29 NA Core P lus 12.50 16.57 -2.66 NA NA 8.48 NA Limited Duration 4.23 9.14 3.69 NA NA 5.66 NA Extended Cash 1.55 3.91 2.37 NA NA 2.61 NA

General Employee Pension Fund ( Diversified ) 11.54 0.33 -15.35 14.38 8.38 -1.79 3.27Policy Benchmark (Weighted Avg Benchmark)** 8.32 -1.31 -13.10 14.25 10.15 -2.42 3.17 Domestic Equity Composite 12.53 -7.41 -21.30 14.98 7.63 -6.40 0.29 Total Int'l Equity 11.16 -3.75 -27.85 23.69 19.40 -8.27 2.66 Total Fixed Income 12.21 17.00 -4.24 5.33 4.08 7.93 6.63 Total Real Estate 11.64 -26.78 -3.84 17.75 NA -7.71 NA

Police and Fire Pension Fund ( Diversified ) 9.33 -1.08 -12.55 15.30 8.50 -1.81 3.45Policy Benchmark (Weighted Avg Benchmark)** 7.94 -2.98 -13.09 13.60 9.20 -3.12 2.45 Domestic Equity Composite 10.75 -5.33 -19.73 19.10 8.50 -5.59 1.69 Total Int'l Equity 7.42 4.14 -29.14 24.70 19.30 -7.45 3.31 Total Fixed Income 7.54 11.75 2.20 5.20 3.40 7.09 5.99 Total Real Estate 8.50 -29.39 6.85 18.30 NA -6.26 NA

Indicies Russell 3000 Composite 10.96 -6.42 -21.54 16.55 10.21 -6.60 0.92 MSCI EAFE Index 3.71 3.80 -30.13 25.38 19.65 -9.06 2.45 NCREIF Property Index 5.84 -22.09 5.27 17.31 17.62 -4.61 3.67 Barclays Capital U.S. Aggregate Bond Index 8.16 10.56 3.65 5.14 3.67 7.42 6.20 BofA ML U.S. Corp & Gov 1-3 Yrs 3.26 5.89 4.48 5.68 3.89 4.54 4.64 BofA ML U.S. Treasury Notes 0-1 Year 0.39 1.35 3.71 5.38 4.36 1.81 3.02 Citigroup Treasury Bill-3 Month 0.12 0.39 2.55 5.01 4.41 1.01 2.48

NA = Specific consol idation / strategy did not exis t at that time*excludes depository accounts

Barclays Capital Aggregate BondBofA ML 1-3 yr Corp/Govt BondBofA ML 0-1 yr Treasury BondCitigroup 3-month Treasury BillRu ssell 3000 StockMSCI EAFE StockNCREIF Property

INVESTMENT PORTFOLIO PERFORMANCEOctober 1, 2009 to September 30, 2010

(Reported in Percentage and Gross of Investment Management Fees)

20%

40%

0%40%

0%0%

0%

Benchmarks for the General Employee and Police and Fire Pension funds are calculated by Summit Strategies while the Operat ing Portfolio Policy Benchmark is prepared by staff using BNY Mellon custody reporting data.

Operating Fund General Employee25%0%0%0%

35%20% 20%

15%

**Benchmark Composit ion:

25%Police and Fire

0%0%

40%15%5%

-81-



4. Interest Rate Risk Interest rate risk is controlled primarily through duration, which is a measure that approximates the change in value of a bond, or bond portfolio, for a given change in interest rates. In general, shorter duration measures are less sensitive to interest rate shifts, while longer durations are more sensitive. To limit the portfolio volatility associated with changes in interest rates, the City’s Investment Policy Statement restricts the average duration of the overall portfolio to a range of 0.75 – 5.00 years, of which, no more than 7.5% of the individual securities in the portfolio can have a duration greater than 8.5 years. This guideline applies to all investment types underlying the portfolio including, but not limited to, government, agency, corporate, international, and mortgage backed securities, as referenced in Section 3. B. 1.

5. Credit Quality The Operating and Pension portfolios measure credit quality of the fixed income holdings contained therein using Moody’s rating schedule. Within the Operating Portfolio, the City’s Investment Policy Statement is designed to control credit risk by requiring both, minimum amounts that must be invested in the highest quality U.S. Government securities, as well as a maximum limit of 7.5% of the normal portfolio balance in non-investment grade securities. This is reported and monitored monthly by the Investment Committee and staff. Credit Quality for the Pension Plan is reported on a quarterly basis and is monitored by the Pension Board of Trustees, staff to the board, and by the plan’s consultant. Credit Quality reports are provided on the overall portfolios to illustrate the credit risk at fiscal-year end.

General Employee Pension Plan Police and Fire Pension Fund

Quality Breakdown Portfolio (%) Portfolio (%) Portfolio (%)Treasury 12% 6% 22%Agency 11% 25% 35%Aaa 13% 6% 19%Aa1-Aa3 4% 3% 5%A1-A3 13% 13% 19%Baa1-Baa3 13% 13% 0%Other 4% 1% 0%Commingled 30% 33% 0%

100% 100% 100%

Operating Portfolio

Credit QualitySeptember 30, 2010

Ratings definitions:

Treasury – United States Treasury Securities Agency – Government Agency Securities Aaa (AAA) – Highest Investment Grade Quality Rating Aa1–Aa3 (AA+ to AA-) – Medium Investment Grade Quality Rating A1-A3 (A+ to A-) – Medium Low Investment Grade Quality Rating Baa1-Baa3 (BBB+ to BBB-) – Lowest Investment Grade Quality Rating Commingled – Securities that are not applicable to Quality Ratings - they represent predominantly mutual funds that are listed and valued as a whole, not individual holdings, as well as minor exposure to non-investment grade securities.

-82-



6. Foreign Currency The City has nominal exposure to foreign currencies due to investments in non-U.S. markets implemented through our money managers’ portfolios. Foreign currencies will fluctuate relative to the U.S. dollar, but it is believed that the diversification benefits outweigh potential risks. Given the limited exposure, foreign currency risk is considered minor.

Exposure Percentage Exposure Percentage Exposure PercentageU.S. DOLLAR 551,810,127$ 96.70% 1,514,476,772$ 99.96% 907,895,710$ 93.89%CANADIAN DOLLAR 2,653,835 0.47% - 0.00% - 0.00%NEW ZEALAND DOLLAR 3,094,507 0.54% - 0.00% - 0.00%AUSTRALIAN DOLLAR 1,085,194 0.19% - 0.00% 3,048,847 0.31%SOUTH KOREAN WON 2,434,304 0.43% - 0.00% 472,181 0.05%MEXICAN NEW PESO 2,275,822 0.40% - 0.00% - 0.00%BRAZIL REAL 2,134,119 0.37% - 0.00% - 0.00%INDONESIAN RUPIAN 1,688,174 0.30% - 0.00% - 0.00%INDIAN RUPEE 1,501,626 0.26% - 0.00% - 0.00%MALAYSIAN RINGGIT 514,539 0.09% - 0.00% - 0.00%SINGAPORE DOLLAR - 0.00% 17,327 0.00% 1,659,485 0.17%SWISS FRANC - 0.00% 598,899 0.04% 3,610,952 0.37%EURO CURRENCY UNIT - 0.00% 16,034 0.00% 17,456,471 1.80%JAPANESE YEN 360,096 0.00% 14,777 0.00% 16,319,107 1.68%SWEDISH KRONA - 0.00% 5,172 0.00% 1,060,312 0.11%BRITISH POUND STERLING - 0.00% 5,867 0.00% 12,002,658 1.24%HONG KONG DOLLAR - 0.00% - 0.00% 2,502,389 0.26%SOUTH AFRICAN RAND - 0.00% - 0.00% 607,571 0.06%NORWEGIAN KRONE - 0.00% - 0.00% 633,868 0.07%

Total 570,637,537$ 100.00% 1,515,134,849$ 100.00% 967,269,551$ 100.00%

Police and Fire Pension Fund

Foreign Currency ExposureSeptember 30, 2010

General Employees Pension FundOperating Portfolio

C. Securities Lending The City participates in securities lending with both its Operating and Pension portfolios. The City has a contract with its custodian, The Bank of New York Mellon (the City’s Operating Portfolio and the Jacksonville Retirement System) that allows the custodian, acting as agent, to lend securities held in the portfolios with the intent of generating additional interest income. The transactions are designed to be invisible to our third party money managers and are reviewed by staff on an ongoing basis. The market for securities lending was developed to provide temporary access to a large portfolio of securities for broker/dealers who might have a need to borrow specific instruments. Securities are loaned against collateral that may include cash, U.S government securities and irrevocable letters of credit. U.S Securities are loaned against collateral valued at a minimum of 102% of the market value of the securities plus any accrued interest. Non-U.S. securities are loaned versus collateral valued at a minimum of 105% of the market value of the securities plus any accrued interest. If the broker/dealer fails to return the security upon request, the custodian, acting as agent, will utilize the collateral to replace the security borrowed.

-83-


3. CASH, INVESTMENTS AND SECURITIES LENDING C. Securities Lending (continued)

The securities loaned are on a rolling daily basis and the cash collateral can be deposited and/or withdrawn from the investment on a daily basis. The weighted average duration of the collateralized loans at September 30, 2010 was 66 days for the City’s Operating Portfolio and 109 days for the Jacksonville Retirement System. As a result of market disruptions, caused by the financial crisis of 2008-2009, those managing the collateral pool of assets have shifted their strategy to maintain a target allocation that closely represents a portfolio managed to money market guidelines as contained in 2a-7 of the SEC Investment Company Act of 1940. Rule 2a-7 of the act restricts the quality, maturity, and diversity of investments by money market funds. While the Securities Lending portfolio is not subject to this rule, the managers see these guidelines as a conservative approach that will serve to reduce the overall risk profile of invested collateral funds.

The transaction establishes a rebate interest rate (assuming cash collateral), which is due back to the broker/dealer upon return of the security. The cash is then invested short-term and the City and the custodian share in the incremental return available above the rebated interest rate. The short-term fixed income instruments can be invested in high quality, dollar denominated fixed income instruments, with a policy dollar-weighted, average maturity limit of less than thirty days. The City, as a program participant, assumes the risk that (a) the overnight investment will not equal or exceed the rebate interest rate, (b) the overnight investment will experience a loss in fair value (i.e., principal) and (c) the collateral will not be sufficient if the borrower fails to return the security back to the lending bank. As noted above, cash collateral is invested in short-term income instruments. When non-cash collateral is provided the collateral must be obligations issued or guaranteed by the U.S. Government or its agencies and instrumentalities. The City cannot pledge or sell these obligations in the absence of a default by the borrower. While the net asset value of the collateral will fluctuate and potentially subject the City to credit risk if the above-mentioned 102% daily adjusted collateral were to fall below 100%, as of September 30, 2010, the City of Jacksonville maintained a sufficient 102.4%. During the fiscal year ended September 30, 2010; Securities Lending net income was $.52 million ($0.1 million Operating, $.42 million Jacksonville Retirement System). The City periodically reviews the custodian’s practices to insure fair distribution of lending opportunities as well as risk evaluation of prospective broker/dealer borrowers. For accounting purposes, the Statements of Net Assets and Changes in Net Assets reflect the increase in assets, liabilities, interest income and expense associated with securities lending activity.

-84-


4. ACCOUNTS AND MORTGAGES RECEIVABLE

The accounts and mortgages receivable balances in the funds listed below, in thousands, are shown net of an allowance for doubtful accounts. No other funds had an allowance for doubtful accounts at September 30, 2010.

Accounts Allowance for

Fund Receivable Doubtful AccountsGeneral Fund $ 61,425 $ (31,565) $ 29,860 General Capital Project Fund 373 - 373 Non-Major Special Revenue Funds: Budgeted General Government 48 (44) 4 Non-Budgeted General Government 2,545 - 2,545 Major Enterprise Funds: Solid Waste Disposal 28,008 (4,507) 23,501 EverBank Field 298 - 298 Veterans Memorial Arena 144 (24) 120 Non-Major Enterprise Funds: Performing Arts 43 - 43 Convention Center 29 (4) 25 Equestrian Center 9 (2) 7 Storm Water Services 41,294 (8,504) 32,790 Motor Vehicle Inspection 62 (1) 61 Baseball Stadium 14 - 14 Fiduciary Funds: Pension Trust Fund 258 - 258 Agency Fund 2,309 - 2,309

Mortgages Allowance forFund Receivable Doubtful AccountsGeneral Fund $ 33 $ - $ 33 Non-Major Special Revenue Funds: Community Development Block Grant 14,164 (1,920) 12,244 Housing and Neighborhoods 29,606 (6,332) 23,274 State Housing Initiative Partnership 16,660 (135) 16,525

Net Amount Shown on Balance Sheet

Net Amount Shown on Balance Sheet

-85-


5. PROPERTY TAXES A. Ad Valorem Property Taxes:

Property tax collections are governed by Chapter 197, Florida Statutes. The Duval County Tax Collector bills and collects all property taxes levied within the consolidated city/county. Discounts of 4, 3, 2, and 1% are allowed for early payment in November, December, January, and February, respectively. The total millage rate levied by the City was 10.0353 for the fiscal year ended September 30, 2010.

The Florida Constitution, as amended under Article VII, Section 4, limits the increase in homestead property valuations for ad valorem tax purposes to a maximum of the lesser of (i) three percent (3%) of the assessment for the prior year, or (ii) the percent change in the Consumer Price Index for the preceding calendar year. The first tax year in which the limitations of these constitutional provisions apply is January 1,1995. Calendar year 1995 is the base year upon which assessed just value of the homestead property is determined.

B. Property Tax Calendar:

The Tax Collector remits collected taxes at least monthly to the City. The City recognizes property tax revenue as it is received from the Tax Collector since virtually all taxes levied will be collected through the tax collection process within the fiscal year levied for. The calendar of events is as follows: January 1 Property taxes are based on assessed value at this date as determined by

the Duval County Property Appraiser. July 1 Assessment roll approved by the state. September 30 Millage resolution approved by the City Council. October 1 Beginning of fiscal year for which taxes have been levied. November 30 Last day for 4% maximum discount. April 1 Unpaid property taxes become delinquent. May 31 Tax certificates are sold by the Duval County Tax Collector. This is the

first lien date on the properties.

(The remainder of this page is intentionally left blank)

-86-

CITY OF JACKSONVILLE, FLORIDANOTES TO THE FINANCIAL STATEMENTSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

6. CAPITAL ASSET ACTIVITY

Capital asset activity for the year ended September 30, 2010, was as follows (in thousands):

Primary Government

Beginning Balance Dispositions/ Ending BalanceOctober 1, 2009 Additions Reclassifications September 30, 2010

Governmental activities:Capital assets not being depreciated:

Land 280,404$ 20,788$ -$ 301,192$ Easements - 2,952 2,952 Art In Public Places 693 ‐ ‐ 693 Construction in progress 87,007 106,268 (6,149) 187,126 Furniture and equipment in work in process 473 75 (75) 473 Software Development Work In Process 9,610 397 (9,610) 397

Total capital assets not being depreciated 378,187 130,480 (15,834) 492,833 Capital assets being depreciated:

Buildings 543,844 3,898 - 547,742 Furniture, equipment and library books 311,709 23,628 (13,727) 321,610 Improvements 210,948 24,077 - 235,025 Infrastructure 1,796,854 212,951 - 2,009,805 Purchased Software 7,000 154 ‐ 7,154 Internal Software 13,385 12,596 ‐ 25,981

Total assets being depreciated 2,883,740 277,304 (13,727) 3,147,317 Less accumulated depreciation for:

Buildings 156,469 9,686 - 166,155 Furniture, equipment and library books 225,339 32,684 (13,045) 244,978 Improvements 33,217 8,566 ‐ 41,783 Infrastructure 356,975 72,783 ‐ 429,758 Purchased Software 5,416 2,831 ‐ 8,247 Internal Software 3,839 291 ‐ 4,130

Total accumulated depreciation 781,255 126,841 (13,045) 895,051 Total capital assets being depreciated, net 2,102,485 150,463 (682) 2,252,266 Governmental activities capital assets, net 2,480,672$ 280,943$ (16,516)$ 2,745,099$

Beginning Balance Dispositions/ Ending Balance

Business-type activities: October 1, 2009 Additions Reclassifications September 30, 2010

Capital assets not being depreciated:

Land 45,089$ 143$ -$ 45,232$

Easements - 335 - 335

Total capital assets not being depreciated 45,089 478 - 45,567

Capital assets being depreciated:

Buildings and improvements 547,997 745 - 548,742

Furniture and equipment 6,927 389 (597) 6,719

Infrastructure 2,841 8,767 - 11,608

Total assets being depreciated 557,765 9,901 (597) 567,069

Less accumulated depreciation for:

Buildings and improvements 159,397 12,996 - 172,393

Furniture and equipment 6,666 133 (592) 6,207

Infrastructure - 238 - 238

Total accumulated depreciation 166,063 13,367 (592) 178,838

Total capital assets being depreciated, net 391,702 (3,466) (5) 388,231

Business-type activities capital assets, net 436,791$ (2,988)$ (5)$ 433,798$

-87-

CITY OF JACKSONVILLE, FLORIDANOTES TO THE FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

6. CAPITAL ASSET ACTIVITY

Depreciation expense was charged to the functions of the primary government as follows (in thousands):

Governmental activities:General government 24,404$ Human services 860 Public Safety 12,361 Culture and recreation 12,959 Transportation 10,664 Economic environment 56 Physical environment 65,537

Total depreciation expense - governmental activities 126,841$

Depreciation expense was charged to the business-type activities as follows (in thousands):

Business-type activities:Parking system 390$ Motor vehicle inspections 1 Solid Waste 2,061 Stormwater Services 237 Ever Bank Field 5,462 Veterans Memorial Arena 2,451 Baseball Stadium 638 Performing Arts 761 Convention Center 648 Equestrian Center 718

Total depreciation expense - business-type activities 13,367$

-88-

CITY OF JACKSONVILLE , FLORIDANOTES TO FINANCIAL STATEMENTSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

7. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued)

A summary of interfund balances follows (in thousands):

DUE FROM OTHER FUNDS AMOUNT DUE TO OTHER FUNDS PURPOSE

MAJOR FUNDS:

General FundsGeneral Services District 2,100 Public Safety Emergency Incident FundingGeneral Services District 2,300 BJP Project Bonds BJP Bond Project FundingGeneral Services District 1,000 Public Parking System Temporary Interfund LoanGeneral Services District 2,300 Storm water Temporary Interfund LoanGeneral Services District 3 EverBank Field Receivable Adjustment-VenuesGeneral Services District 2 Veterans Memorial Arena Receivable Adjustment-VenuesGeneral Services District 1 Convention Center Receivable Adjustment-VenuesGeneral Services District 200 Performing Arts Temporary Interfund LoanGeneral Services District 400 Equestrian Center Temporary Interfund LoanGeneral Services District 13 Copy Center Temporary Interfund LoanGeneral Services District 1,950 Am Recovery & Reinvestment Temporary Interfund Loan

10,269

Enterprise FundsVeterans Memorial Arena 375 EverBank Field Temporary Interfund LoanVeterans Memorial Arena 164 Baseball Stadium Temporary Interfund LoanVeterans Memorial Arena 1 Equestrian Center Receivable Adjustment-Venues

540

NON-MAJOR FUNDS:

Enterprise FundsPerforming Arts 60 Equestrian Center Temporary Interfund LoanPerforming Arts 28 Cecil Commerce Center Temporary Interfund Loan

88

Convention Center 5 Public Parking Temporary Interfund LoanConvention Center 41 Cecil Commerce Center Temporary Interfund Loan

46

TOTAL 10,943$

ADVANCES TO OTHER FUNDS AMOUNT ADVANCES FROM OTHER FUNDS PURPOSE

NON-MAJOR FUNDS:

Internal Service FundsSelf Insurance 7,807 General Projects Loan for Redevelopment Agreement

7,807$

-89-




TRANSFERS IN AMOUNT TRANSFERS OUT PURPOSE

MAJOR FUNDS:

General FundGeneral Fund 343$ Concurrency Management Operation FundingGeneral Fund 286 Air Pollution Recapture Excess RevenueGeneral Fund 125 General Government Budgeted Low Impact Dev Design ManualGeneral Fund 5,976 Tax Increment Recapture Excess RevenueGeneral Fund 140 Community Development Block Grant Economic DevelopmentGeneral Fund 1 Maintenance, Parks and Recreation Operation FundingGeneral Fund 33 Other Federal, State & Local Grants Recapture Excess RevenueGeneral Fund 1,556 General Government Non-Budgeted Nuisance AbatementGeneral Fund 333 Grant Projects Recapture Excess RevenueGeneral Fund 922 Office of General Council Recapture Excess RevenueGeneral Fund 7,032 Self Insurance Return of Excess Premiums

16,747

Debt Service Special Bonded Debt Obligations 58,422 General Fund Debt Service FundingSpecial Bonded Debt Obligations 1,313 Tax Increment Districts Debt Service FundingSpecial Bonded Debt Obligations 5,569 Better Jacksonville Plan Trust Debt Service FundingSpecial Bonded Debt Obligations 2,694 Storm water Services Debt Service FundingSpecial Bonded Debt Obligations BJP 42,108 Better Jacksonville Plan Trust Debt Service Funding Total 110,106

General Capital ProjectsGeneral Capital Projects 2,533 General Fund Capital Improvement FundingGeneral Capital Projects 1,951 EverBank Field Loan RepaymentGeneral Capital Projects 10,000 General Government Budgeted Capital Improvement FundingGeneral Capital Projects 47 General Government Non-Budgeted Wheelchair Access McGirts ParkGeneral Capital Projects 4,732 Tax Increment Capital Improvement Funding Total 19,263

Enterprise FundsSolid Waste Disposal 21,417 General Fund Operations FundingEverBank Field 7,802 General Fund Operations FundingEverBank Field 79 Veterans Memorial Arena Operations FundingEverBank Field 784 Convention Center Operations FundingVeterans Memorial Arena 8,057 Better Jacksonville Plan Trust Enterprise Debt Service

38,139

-90-




TRANSFERS IN AMOUNT TRANSFERS OUT PURPOSE

NON-MAJOR FUNDS:

Special RevenueGeneral Government - Budgeted 334 General Fund Program FundingGeneral Government - Budgeted 400 Insured Programs Operation FundingOther Federal, State & Local Grant 4,586 General Fund Senior Services ProgramOther Federal, State & Local Grant 60 Fleet Management Return of Unused FundingOther Federal, State & Local Grant 1,034 General Government Non-Budgeted Law Enforcement Boat Dock FacilityPublic Safety 2,275 General Fund Operations FundingJacksonville Children's Commission 21,058 General Fund Program FundingCommunity Development Block Grant 270 General Fund Grant FundingCommunity Development Block Grant 75 Tax Increment Districts Museum of Modern Art RepaymentMaintenance, Parks and Recreation 1,957 General Fund Hanna Park & Cecil Comm FundingAir Pollution Control 424 General Fund Grant Funding Total 32,473

Debt ServiceOther Non-Bonded Debt Obligations 80 General Fund Debt Service FundingOther Non-Bonded Debt Obligations 1,243 Tax Increment District Debt Service Funding Total 1,323

Capital ProjectsGrant Capital Improvement Projects 890 General Capital Projects Grant Project FundingGrant Capital Improvement Projects 836 General Fund Grant Project Funding Total 1,726

Enterprise FundsBaseball Stadium 2,129 Better Jacksonville Plan Trust Enterprise Debt ServiceBaseball Stadium 80 Veterans Memorial Arena Operations FundingBaseball Stadium 487 Convention Center Operations FundingPerforming Arts 43 General Fund Operations FundingPerforming Arts 9 General Fund Enterprise Debt ServicePerforming Arts 936 Convention Center Operations FundingEquestrian Center 179 General Fund Operations FundingEquestrian Center 641 Convention Center Receivable AdjustmentStormwater Services 1,294 General Fund Waived Fee Funding Total 5,798

Internal Service FundsFleet Management 1,244 General Fund Vehicle Replacement FundingFleet Management 3 Other Federal, State and Local Grants Vehicle Replacement FundingFleet Management 200 American Recovery & Reinvestment Act Vehicle Replacement FundingInformation Technology 500 General Fund Technology Equipment RefreshOffice of General Council 750 Solid Waste Legal RetainerSelf Insurance 1,072 General Fund Group Health Funding Total 3,769

Fiduciary FundsPrivate Purpose Trust 15 General Government Non Budgeted Annual Funding Total 15

TOTAL $ 229,359

-91-


7. INTERFUND RECEIVABLES, PAYABLES, ADVANCES AND TRANSFERS (continued)

During fiscal year 1999, the self-insurance fund advanced $14,000,000 to the capital projects fund for the purpose of fulfilling City obligations under a redevelopment agreement for a new 900-room hotel with substantial convention and business spaces. The total capital investment for the project was $126.0 million. The City Council passed an ordinance to treat the funding from the self-insurance fund as a loan which will be repaid from general fund revenues commencing on May 1, 2000 in equal annual installments over 20 years, plus simple interest of 4.4%. The balance of this advance was $7,806,868 at September 30, 2010. In fiscal year 2003, the City passed an ordinance to enter into a redevelopment agreement with Vestcor Companies and its subsidiaries for the redevelopment of the Lynch Building and the Roosevelt Hotel into apartment buildings as City historic landmarks. In fiscal year 2003, the City used internal self-insurance funds, in an amount of $17,816,000, to provide permanent financing for the Lynch Building project. The self-insurance fund will be repaid on an annual basis with funds from the Northbank Downtown Tax Increment District. The terms of the repayment are a 30-year amortization, with a 20-year term at a fixed interest rate of 6% per year. Annual payments are $1,294,313 which includes both principal and interest with a balloon payment of $8,290,400 at the end of the 20-year period. The balance of the loan at September 30, 2010 was $14,328,163 which is recorded in the Self Insurance Fund. Vestcor will repay the City an amount of $17,816,000 to the Downtown Economic Development fund as created by ordinance 2000-1079-E. The terms of the repayment is a 40-year amortization, with a 20-year term at a fixed interest rate of 1.525% per year. Annual principal and interest payments were initially scheduled for $595,248, but were reduced to interest-only payments for the three year period beginning March 1, 2010. The deferred principal payments were added to the balloon payment, which is now $11,389,033 due on July 1, 2023. The balance of the loan at September 30, 2010 was $15,576,840 which is recorded in the Jacksonville Economic Development Commission Fund.


-92-


8. LONG-TERM OBLIGATIONS

A. Bonds and loans outstanding:

The bonds and loans outstanding as of September 30, 2010 are as follows (in thousands): Amount Amount Remaining True Interest

GOVERNMENTAL ACTIVITIES: Issued Outstanding Coupon Rates Cost (1)

Revenue Bonds Supported by General Fund:

Excise Taxes Revenue Bonds:Series 1993 $ 43,605 $ 7,355 6.200-6.300% 6.292%Series 2001B 46,735 42,140 4.300-5.125% 5.271%Series 2002A 56,685 19,165 5.250-5.500% 4.270%Series 2002B 68,475 55,535 3.300-5.375% 4.576%Series 2003A 18,745 16,660 3.000-4.500% 4.051%Series 2003C (AMT) 34,540 32,520 3.500-5.250% 4.915%

* Series 2005A 42,820 42,306 3.500-5.000% 4.685%Series 2006A 36,540 36,540 3.375-5.000% 4.559%Series 2006B (AMT) 9,255 9,255 3.625-4.000% 4.169%Series 2006C 23,555 23,555 4.880-5.220% 5.228%Series 2007 42,245 40,280 4.000-5.000% 4.534%Series 2009A 39,585 39,585 2.500-5.000% 4.399%

* Series 2009B 18,535 18,535 2.500-5.000% 3.035%* Series 2009C 2,275 2,275 2.500-5.000% 3.281%

Local Government Sales Tax Revenue Bonds:* Series 1996 47,682 2,687 5.125% 5.352%

Series 2001 103,725 73,290 4.200-5.500% 4.571%Series 2002 63,060 45,020 3.625-5.375% 4.407%

Guaranteed Entitlement Revenue Bonds:Series 2002 115,265 99,930 3.750-5.375% 5.019%

Capital Project Revenue Bonds:* Series 2008A 67,035 65,388 Variable, assumed 3.80% N/A* Series 2008B 67,035 65,388 Variable, assumed 3.80% N/A

Special Revenue Bonds * Series 2009C-1 30,170 30,170 3.000-5.000% 2.509%* Series 2009C-2 (Taxable BABS) 10,995 10,995 4.240-4.990% (taxable) 3.111%* Series 2010A 48,000 48,000 3.250-5.125% 2.737%

Total Revenue Bonds Supported by General Fund $ 1,036,562 $ 826,574

Notes Payable Supported by General Fund:

U.S. Government Guaranteed:Series 1995 (Coach) $ 3,845 $ 1,860 4.790-5.190% (taxable) N/ASeries 2010 (Sally Beauty) 1,065 160 0.560-0.860% (taxable) N/ASeries 2010 (Hilton Hotel) 2,850 1,420 0.560-2.200% (taxable) N/ASeries 2010 (La Villa) 1,700 685 0.560-2.660% (taxable) N/ASeries 2010 (Armor Holdings) 775 440 0.560-2.660% (taxable) N/ASeries 2010 (Hampton Inns) 550 280 0.560-2.200% (taxable) N/A

Total Notes Payable Supported by General Fund $ 10,785 $ 4,845

Total Bonds and Notes Supported by General Fund $ 1,047,347 $ 831,419

-93-


8. LONG-TERM OBLIGATIONS (continued)

A. Bonds and loans outstanding (continued) Amount Amount Remaining True InterestIssued Outstanding Coupon Rates Cost (1)

Special Revenue (Covenant) Bonds Payable from Internal Service Operations:

Special Revenue Bonds ($183,591 authorized but unissued):Series 2008 $ 54,215 $ 53,680 3.500-5.625% 4.966%Series 2009A 28,613 28,613 Variable, assumed 5.00% N/A

* Series 2009C-1 40,160 40,160 3.000-5.000% 2.509%* Series 2009C-2 (taxable BABs) 26,315 26,315 4.240-4.990% (taxable) 3.111%* Series 2010A 46,945 46,945 3.250-5.000% 2.737%

Total Special Revenue Bonds Payablefrom Internal Service Operations $ 196,248 $ 195,713

Notes Payable from Internal Service Operations:

Commercial Paper Notes ($75,220 authorized but unissued): $ 137,125 $ 55,000 Variable, assumed 3.25% N/A

Total Notes Payable from Internal Services Operations $ 137,125 $ 55,000

Total bonds and notes payable from Internal Service Funds $ 333,373 $ 250,713

Revenue Bonds Supported by BJP Revenues:

Transportation Sales Tax Revenue Bonds ($152,568 authorized but unissued):Series 2001 $ 179,280 $ 164,300 4.400-5.500% 4.042%Series 2007 100,675 95,015 4.000-5.000% 4.745%Series 2008A 154,535 154,535 Variable, assumed 4.34% N/ASeries 2008B 121,740 113,095 Variable, assumed 3.43% N/A

Infrastructure Sales Tax Revenue Bonds * Series 2001 163,956 139,103 4.300-5.500% 5.263%* Series 2003 158,416 136,010 3.250-5.250% 4.715%* Series 2004 164,200 143,881 2.500-5.000% 4.345%

Series 2008 105,470 102,805 4.000-5.000% 4.626%

Total Revenue Bonds Supported by BJP Revenues $ 1,148,272 $ 1,048,744

Special Revenue (Covenant) Bonds Supported by BJP Revenues:

Special Obligation Bonds ($91,780 authorized but unissued)Series 2009B-1A $ 52,090 $ 52,090 2.000-5.000% 4.006%Series 2009B-1B (taxable BABs) 55,925 55,925 6.259% (taxable) 6.341%Series 2010B 100,205 100,205 5.000% 2.282%

Total Special Revenue Bonds Supported by BJP Revenues $ 208,220 $ 208,220

-94-



A. Bonds and loans outstanding (continued) Amount Amount Remaining True InterestIssued Outstanding Coupon Rates Cost (1)

Notes Payable Supported by BJP Revenues:

State of Florida Infrastructure Bank ($3,091 authorized but unissued): Series 2005 $ 40,000 $ 29,299 2.000% 1.901% Series 2007 46,909 36,573 2.500% 2.456%

Total Notes Payable Supported by BJP Revenues $ 86,909 $ 65,872

Total Bonds and Notes Supported by BJP Revenues $ 1,443,401 $ 1,322,836

Total Governmental Activities $ 2,824,121 $ 2,404,968

BUSINESS-TYPE ACTIVITIES:

Revenue Bonds Supported by Business-Type Activities:

Excise Taxes Revenue Bonds:Series 2003B $ 9,530 $ 2,550 5.000% 2.915%

* Series 2005A 2,000 2,000 3.500-5.000% 4.685%* Series 2009B 10,475 10,475 2.500-5.000% 3.035%* Series 2009C (AMT) 21,455 21,455 2.500-5.000% 3.281%

Local Government Sales Tax Revenue Bonds:* Series 1996 17,958 1,012 5.125% 5.352%

Capital Project Revenue Bonds * Series 2008A 250 232 Variable, assumed 3.80% N/A* Series 2008B 250 232 Variable, assumed 3.80% N/A

Infrastructure Sales Tax Revenue Bonds * Series 2001 54,474 46,217 4.300-5.500% 5.263%* Series 2003 52,634 45,190 3.250-5.250% 4.715%* Series 2004 54,555 47,805 2.500-5.000% 4.345%

Capital Improvement Revenue Bonds:Series 1997 8,285 6,010 5.000-5.250% 5.452%Series 1998 37,310 34,780 4.500-5.000% 5.250%Series 2002A 54,135 52,020 3.500-5.000% 4.820%Series 2002B 42,170 32,630 5.000-5.250% 4.820%Series 2002C 26,920 23,535 3.500-5.250% 4.820%

Total Business-Like Activities $ 392,401 $ 326,143

COMPONENT UNITS (Note 8N):Bond and notes payable:

JEA $ 6,369,554 JAA 209,880 JPA 234,701

Total Component Unit bonds and notes payble $ 6,814,135

* Indicates individual bond series that were issued in support of both Governmental Activities and Business-Type Activities.(1) True Interest Cost (TIC) is the actual cost of financing debt and refers to the overall rate of interest to be paid over the life of the bonds, factoring in coupon interest, any premium or discounts, and the time value of money.

-95-



B. Debt Service Requirements to Maturity:

The Debt service requirements to maturity on long-term obligations at September 30, 2010 are as follows (in thousands):

Principal

Fiscal Year Supported by General Revenues Supported by and Interest-Ending and Internal Service Funds BJP Revenues Enterprise Funds Primary

September 30 Principal Interest Principal Interest Principal Interest Government Principal Interest

2011 $ 40,904 $ 48,405 $ 27,442 $ 56,533 $ 13,125 $ 15,161 $ 201,570 $ 210,135 $ 135,4972012 75,840 48,617 41,316 57,807 13,704 14,631 251,915 296,062 248,770 2013 65,549 46,700 30,399 56,468 12,962 14,087 226,165 280,084 221,485 2014 64,962 44,211 33,859 55,286 13,575 13,511 225,404 294,545 210,368 2015 58,893 41,732 44,885 53,539 14,229 12,881 226,159 331,963 196,599

2016- 2020 282,759 153,509 226,047 239,387 66,913 54,313 1,022,928 1,238,043 839,240 2021- 2025 194,212 92,863 267,292 186,944 71,385 38,401 851,097 1,048,730 634,019 2026- 2030 161,457 51,383 424,247 104,392 89,130 18,979 849,588 990,071 485,365 2031- 2035 122,541 15,379 205,989 19,960 31,120 792 395,781 1,004,802 329,189 2036- 2040 12,205 2,339 21,360 1,637 - - 37,541 902,480 142,875 2041- 2045 2,810 72 - - - - 2,882 217,220 19,690

Totals $ 1,082,132 $ 545,210 $ 1,322,836 $ 831,953 $ 326,143 $ 182,756 $ 4,291,030 $ 6,814,135 $ 3,463,097

Bonds and Notes Payable from Governmental Activities

Component Units

Bonds Payable fromBusiness-type Activities

The City’s Covenant Bond program allows for the issuance of debt which has both a stated maturity date, which is the initial maturity for a bond, and a designated maturity, which reflects the City’s intended amortization to maturity. The table of debt service requirements to maturity above is prepared using designated maturities reflecting the City’s intended re-amortization to maturity. At each stated maturity the City can retire the maturing amount in whole or in part, or refund the maturing bonds as a part of its annual capital borrowing into another stated maturity, variable rate debt, or fixed rate debt amortized to maturity as determined by then market conditions. The table does not reflect any accelerated amortizations that may result under the term out provisions as discussed in Note 8.G., Demand Bonds. Stated maturities for designated maturity debt outstanding at year end are shown in the table below (in thousands).

Fiscal Year Supported by General Revenue Supported byEnding and Internal Service Funds BJP Revenues Total

September 30 Series 2009C Series 2010A Total Series 2010B All Programs

2012 $ 6,295 $ 6,295 $ 6,2952013 6,530 $ 5,765 12,295 $ 7,705 20,000 2014 6,755 5,540 12,295 7,705 20,000 2015 6,995 5,300 12,295 7,705 20,000 2016 7,345 4,950 12,295 7,705 20,000 2017 - 6,200 6,200 7,705 13,905 2018 - 6,200 6,200 7,715 13,915 2019 - 6,160 6,160 7,715 13,875 2020 - - - 7,715 7,715 2021 - - - 7,715 7,715

Total by Series 33,920$ 40,115$ 74,035$ 69,385$ 143,420$

-96-



C. Changes in Long-Term Liabilities: Changes in long-term liabilities for the fiscal year ended September 30, 2010 are as follows (in thousands):

Balance BalanceOctober 1, September 30, Due within

2009 Additions Reductions 2010 one yearGovernmental Activities:Debt activity supported by general revenues: Revenue bonds $ 771,550 $ 89,165 $ 34,141 $ 826,574 $ 33,815 Notes payable 5,790 945 4,845 945 Debt activity- general revenues 777,340 89,165 35,086 831,419 34,760 Bonds/notes payable - Banking Fund Special revenue (covenant) bonds 82,828 113,420 535 195,713 6,144 Notes payable 73,815 14,420 33,235 55,000 - Debt activity - internal service funds 156,643 127,840 33,770 250,713 6,144 Debt activity - general revenues and internal service 933,983 217,005 68,856 1,082,132 40,904 Debt activity supported by BJP revenue: Revenue bonds - BJP 1,070,178 - 21,434 1,048,744 22,291 Special revenue (covenant) bonds - BJP 108,015 100,205 - 208,220 - Notes payable - BJP 60,719 10,188 5,035 65,872 5,151 Debt activity - BJP 1,238,912 110,393 26,469 1,322,836 27,442 Total governmental activities 2,172,895 327,398 95,325 2,404,968 68,346 Deferred amounts: Loss on Advance Refunding (4,065) - (679) (3,386) - Issuance premiums 26,285 37,997 5,227 59,055 - Issuance discounts (3,160) - (155) (3,005) - Total deferred amounts 19,060 37,997 4,393 52,664 - Accrued Compensated Absences 61,739 39,000 36,806 63,933 19,180 Capitalized Lease Obligations 313 313 - - Estimated Liability for Self-Insured Losses 86,732 18,612 21,688 83,656 - Pollution Remediation 153,567 8,175 11,064 150,678 11,497 Other Post - Employment Benefits 14,839 6,235 - 21,074 - Miscellaneous long-term obligations 1,533 414 1,119 - Governmental activity long-term obligations $ 2,510,678 $ 437,417 $ 170,003 $ 2,778,092 $ 99,023

(Remainder of page intentionally left blank)

-97-



C. Changes in Long-Term Liabilities: (continued)

Balance BalanceOctober 1, September 30, Due within

2009 Additions Reductions 2010 one yearBusiness-Type Activities:Revenue Bonds $ 341,887 - $ 15,744 $ 326,143 $ 13,125 Less: Unamortized Discount/Premium and, Deferred Loss on Advance Refunding (1,158) - (276) (882) - Total Revenue Bonds, less Unamortized Discount/Premium and, Deferred Loss on Advance Refunding $ 340,729 - $ 15,468 $ 325,261 $ 13,125 Accrued Compensated Absences 1,341 1,091 1,011 1,421 430 Liability for Landfill Closure and Post Closure Care 63,668 2,778 621 65,825 - Picketville Waste Site 632 - 65 567 Other Post - Employment Benefits 472 265 - 737 - Loans payable - Banking Fund 2,250 - 2,250 - Business-type activity long-term obligations $ 409,092 $ 4,134 $ 17,165 $ 396,061 $ 13,555

Component Unit Activities:Bonds and notes payable: JEA $ 6,299,388 $ 772,372 $ 702,206 $ 6,369,554 $ 192,378 JAA 218,885 - 9,005 209,880 9,400 JPA 235,265 61,910 62,474 234,701 8,357 Other long-term obligations 3,570 (1,968) 1,164 438 1,425 Component unit activity long-term obligations $ 6,757,108 $ 832,314 $ 774,849 $ 6,814,573 $ 211,560


-98-



D. Reconciliation of debt issued to financial reporting classifications: Certain of the City’s bonds issued in a single transaction are for assets acquired or constructed for both governmental and business-type activities. As a result, the financial statements report debt outstanding and the related debt service for that combined transaction in both governmental and business-type activities in the relative proportion of the cost of the underlying assets acquired or constructed. When individual business-type revenues are not sufficient to pay for operations inclusive of allocated debt service, interfund transfers are made in amounts to address the shortfall. The following table shows the original combined issue amount and where the debt is reported.

Original Outstanding debt reported in TotalAmount Governmental Business-type Amount

Bond Series Issued Activities Activities Outstanding

Excise Tax Revenue Bonds: Series 2005A $ 44,820 $ 42,306 $ 2,000 $ 44,306 Series 2009B 29,010 18,535 10,475 29,010 Series 2009C 23,730 2,275 21,455 23,730

Local Government Sales Tax Revenue Bonds: Series 1996 65,640 2,688 1,012 3,700

Capital Projects Revenue Bonds: Series 2008A 67,285 65,387 232 65,619 Series 2008B 67,285 65,387 232 65,619

BJP Infrastructure Sales Tax Revenue Bonds: Series 2001 218,430 139,103 46,217 185,320 Series 2003 211,050 136,010 45,190 181,200 Series 2004 218,755 143,881 47,804 191,685


-99-



E. Pledged Revenues:

The City has formally committed to secure certain debt issued by the City with specific future revenues. A summary of those debt issues and the related pledged revenues follows. The detailed listing of individual series by pledge source is included in Note 8A.

Range of Approximate Current year Current year Principal andremaining future principal revenue principal interest as %

term and interest received and interest of revenue

2011 - 2034 $645,415,315 $128,223,785 $42,675,484 33.28%

1/2 Cent Sales Tax: 2018 $153,418,712 $67,641,900 $17,171,749 25.39%

Revenues: 2032 $168,870,669 $7,825,119 $7,403,206 94.61%

(Capital Project Bonds): 2034 $217,239,046 $99,187,528 $8,634,352 8.71%

Transportation Sales Tax: 2027 - 2037 $883,957,061 $71,417,379 $31,208,265 43.70%

Better Jacksonville (Infrastructure) Sales Tax: 2014 - 2030 $1,069,358,296 $61,321,788 $49,209,130 80.25%

Improvement Revenues: 2019 - 2030 $239,139,633 $18,671,779 $11,364,231 60.86%

JEA Charter Revenues

(Better Jacksonville)

Sports Facilities Capital

Excise Taxes:

Local Government

Guaranteed Entitlement

Excise Taxes - Bonds have been issued to fund citywide capital projects, and are supported by a pledge against the proceeds of the Utilities Services Taxes and the Occupational License Taxes. Local Government 1/2 Cent Sales Tax - Bonds have been issued to fund the River City Renaissance program and various citywide capital improvements, and are supported by a pledge against the proceeds of the local government half-cent sales tax. Guaranteed Entitlement Revenues - Bonds have been issued to fund the construction and renovation of various criminal justice facilities, and are supported by a pledge against the City's "guaranteed entitlement" portion of the State's shared revenues under the Revenue Sharing Act for counties and municipalities, which is derived from the State's i) sales and use tax and ii) Cigarette Tax. JEA Charter Revenues (Capital Project Bonds) - Bonds have been issued to fund drainage and general capital programs, and are supported by a pledge against the JEA Contribution, which is annually appropriated to the City from available Electric and Water & Sewer revenues. (Better Jacksonville) Transportation Sales Tax - Bonds have been issued to fund acquisition and construction of road, bridge, drainage and other transportation projects, and are supported by a pledge against the discretionary half-cent Transportation Sales Tax and Gas Tax.

-100-


8. LONG-TERM OBLIGATIONS (continued) E. Pledged Revenues (continued)

Better Jacksonville (Infrastructure) Sales Tax - Bonds have been issued to fund the acquisition and construction of capital projects constituting part of the Better Jacksonville Plan, and are supported by a pledge against the discretionary half-cent Infrastructure Sales Tax. Sports Facilities Capital Improvement Revenues - Bonds have been issued to fund renovations to EverBank Field, and are supported by a pledge against the proceeds of Franchise Fees, 15% of the Communications Services Taxes, Sports Facility Sales Tax Rebates, Convention Development Taxes and the Sports Facilities Tourist Development Taxes.

F. New Indebtedness Issued:

On December 15, 2009, the City closed on the sale of $107,640,000 Special Revenue Bonds issued as Series 2009C-1 ($70,330,000 tax exempt) and Taxable Direct Payment Build America Special Revenue Bonds Series 2009C-2 ($37,310,000). The 2009C-1 bonds have a true interest cost of 2.509% and an average coupon rate of 4.29% with a mandatory sinking schedule beginning October 1, 2010 and a maturity date of October 1, 2016. The 2009C-2 Taxable Direct Pay Build America Bonds have a true interest cost of 3.11% after interest rebate and a targeted average coupon rate of 4.66% with a mandatory sinking schedule beginning October 1, 2010 and a maturity date of October 1, 2021. The proceeds of the 2009C-1 and 2009C-2 bonds were used to fund the acquisition and construction of certain drainage and Capital Improvement Plan capital projects ($104,746,654) and a portion of the composite Special Revenue Cash Debt Service Reserve Fund ($7,211,560). The issuance provided net proceeds of $112,976,129, which is inclusive of underwriter’s discounts and costs of issuance totaling $1,017,915 and a bond premium of $5,336,129. On September 16, 2010, the City closed on the sale of $100,205,000 Special Revenue Bonds, Series 2010B with a true interest cost of 2.282% and an average coupon rate of 5.00% with a mandatory sinking schedule beginning October 1, 2010 and a stated maturity date of October 1, 2021 and a Designated Maturity Date of October 1, 2030. The proceeds of the 2010B bonds were used to fund the acquisition and construction of various capital projects constituting a part of the Better Jacksonville Plan ($110,000,000) and to fund a Debt Service Reserve ($9,058,957). The issuance provided net proceeds of $119,747,964, which was inclusive of underwriter’s discounts and costs of issuance totaling $689,007 and a bond premium of $19,542,964. On September 29, 2010, the City closed on the sale of $94,945,000 Special Revenue Bonds, Series 2010A with a true interest cost of 2.737% and an average coupon rate of 4.71% with a mandatory sinking schedule beginning October 1, 2012 and a maturity date of October 1, 2025. The proceeds of the 2010A bonds were used to fund the acquisition and construction of various Capital Improvement Plan projects ($99,819,708) and to fund a Debt Service Reserve ($7,228,437). The issuance provided net proceeds of $108,062,135 which was inclusive of underwriter’s discounts and costs of issuance totaling $1,013,990 and a bond premium of $13,117,135. Market conditions during the fiscal year dictated the issuance of bonds with significant premiums, which reduced the face amount of the borrowing and the effective True Interest Cost (TIC) of the transaction.

-101-



G. Demand Bonds Issued by the City:

Each series of demand bonds listed below meets the criteria for inclusion as long term debt of the City. $154,535,000 Transportation Revenue Bonds, Series 2008A:

Bond Terms - The Series 2008A Transportation Bonds (the Bonds) are uninsured variable rate demand bonds which mature and are remarketed every seven days at a reset interest rate. Liquidity Agreement Terms - Liquidity for the Bonds is provided by a Standby Bond Purchase Agreement (the Agreement) with JPMorgan Chase Bank (the Bank) dated April 1, 2008 and expiring April 20, 2012. Terms of Take Out - The Agreement contains a mandatory purchase provision requiring the Bank to purchase the Bonds if the Agreement is not replaced or renewed by the expiration date. If the Bonds were to be purchased by the Bank, then the City would be required to amortize the balance of the Bonds ($151,835,000 as of the current termination date) over 12 equal quarterly installments beginning 180 days after the date of purchase. As of September 30, 2010, there were no advances outstanding or bank bonds held under this Agreement.

$121,740,000 Transportation Revenue Bonds, Series 2008B:

Bond Terms - The Series 2008B Transportation Bonds (the Bonds) are uninsured variable rate demand bonds which mature and are remarketed every seven days at a reset interest rate. Liquidity Agreement Terms - Liquidity for the Bonds is provided by a Letter of Credit and Reimbursement Agreement (the Agreement) with Wachovia Bank (the Bank) dated May 1, 2009 and expiring August 1, 2012. Terms of Take Out - The Agreement contains a mandatory purchase provision requiring the Bank to purchase the Bonds if the Agreement is not replaced or renewed by the expiration date. If either i) the Bonds were to be purchased by the Bank or ii) the Bank extends an advance to the City under the Letter of Credit, then the City would be required to amortize the balance of the Bonds ($103,400,000 as of the current termination date) over 6 equal semi-annual installments beginning 6 months after the date of purchase or advance. As of September 30, 2010, there were no advances outstanding or bank bonds held under this Agreement.

-102-



G. Demand Bonds Issued by the City (continued)

$67,285,000 Capital Projects Bonds, Series 2008A: Bond Terms - The Series 2008A Capital Projects Bonds (the Bonds) are uninsured variable rate demand bonds which mature and are remarketed every seven days at a reset interest rate. Liquidity Agreement Terms - Liquidity for the Bonds is provided by a Letter of Credit and Reimbursement Agreement (the Agreement) with the Bank of America (the Bank) dated July 1, 2008 and expiring July 15, 2011. The City intends to replace or renew this Agreement prior to the current expiration date. Terms of Take Out - The Agreement contains a mandatory purchase provision requiring the Bank to purchase the Bonds if the Agreement is not replaced or renewed by the expiration date. If either i) the Bonds were to be purchased by the Bank or ii) the Bank extends an advance to the City under the Letter of Credit, then the City would be required to amortize the balance of the Bonds ($64,215,000 as of the current termination date) over 10 equal semi-annual installments beginning 6 months after the date of purchase or advance. As of September 30, 2010, there were no advances outstanding or bank bonds held under this Agreement.

$67,285,000 Capital Projects Bonds, Series 2008B:

Bond Terms - The Series 2008B Capital Projects Bonds (the Bonds) are uninsured variable rate demand bonds which mature and are remarketed every seven days at a reset interest rate. Liquidity Agreement Terms - Liquidity for the Bonds is provided by a Letter of Credit and Reimbursement Agreement (the Agreement) with SunTrust Bank (the Bank) dated July 1, 2008 and expiring July 15, 2011. The City intends to replace or renew this Agreement prior to the current expiration date. Terms of Take Out - The Agreement contains a mandatory purchase provision requiring the Bank to purchase the Bonds if the Agreement is not replaced or renewed by the expiration date. If either i) the Bonds were to be purchased by the Bank or ii) the Bank extends an advance to the City under the Letter of Credit, then the City would be required to amortize the balance of the Bonds ($64,215,000 as of the current termination date) over 10 equal semi-annual installments beginning 6 months after the date of purchase or advance. As of September 30, 2010, there were no advances outstanding or bank bonds held under this Agreement.

-103-



H. Non-Asset Debt:

The City has issued debt for the benefit of its component units or other public use entities where the asset acquired or constructed will not be owned by the primary government. An expense is recorded by the City instead of a capital asset on the citywide statements, while the debt remains as a liability of the City. The following is a listing of the outstanding debt in the Governmental Activities that was issued for non-asset backed debt:

Entity or PurposeExcise Taxes Bonds

Series 1993 Jacksonville Port Authority $ 7,354,675Series 2002B Shands Jacksonville Medical Center 55,535,000Series 2003C (AMT) Jacksonville Port Authority 32,520,000

Better Jacksonville Plan (BJP) Bonds for use by the Jacksonville Transportation Authority (JTA)

Series 2007 JTA road projects 56,760,000Series 2009B-1 JTA road projects 7,611,851Series 2010B JTA road projects 15,186,158

BJP State Infrastructure Bank (SIB) Loan

SIB Loan #1 JTA road projects 29,299,456SIB Loan #2 JTA road projects 36,572,492

Other Bond Issues

Various Misc. projects - BJP 110,314,000Various Misc. projects - other 51,011,130

Banking Fund Financed Projects

Various Misc. projects - other 12,069,018

TOTAL $ 414,233,780

Amount Outstanding

-104-



I. Defeased Debt:

The City has defeased certain serial bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the city’s financial statements. As of September 30, 2010, the City had legally defeased the following bond maturities (in thousands):

Issue Refunded by

Principal Balance at

September 30, 2010

Investment Balance with Escrow Agent at

September 30, 2010 (a)

Sales Tax Revenue Bonds, Series 1996 (RCR)

Cash Refunded on October 10, 2002 $14,535 $15,634

(a) Source: Escrow Agent’s Records


-105-


8. LONG-TERM OBLIGATIONS (continued) J. Derivative Instrument Payments and Hedged Debt:

The City of Jacksonville has implemented GASB 53 Accounting and Financial Reporting for Derivative Instruments for the fiscal year ended September 30, 2010.

The City has entered into two interest rate swaps structured as integrated hedges with the same amortization as the bonds resulting in synthetic fixed rate debt in the Better Jacksonville Plan financing. For purposes of credit, the swaps are secured by a pledge on the City’s transportation sales tax and constitutional gas tax with a lien on parity to the bonds. The counterparty does not have the right to terminate these transactions unless a termination event occurs. The City retains the right to terminate the swap agreements at any time. The City computed the actual synthetic rate for both swaps for the year ended September 30, 2010 by adding the net swap payments to the variable rate interest paid and dividing by the notional amount and determined that the actual synthetic rate fell within 90 to 111 percent of the swap fixed rate. Using the synthetic instrument method, the swap is deemed an effective hedging instrument and hedge accounting is applied. The swap agreements require the City to post cash collateral when the negative market value of the swap exceeds $25 million equal to the residual exposure. A lower credit rating will also increase the amount of collateral required. The table below summarizes the key elements of the swaps as of September 30, 2010. The fair values were obtained by the counter-parties’ mark-to-market reports submitted to the City.

SIFMA 67%Index LIBOR

Bond Series Transportation Revenue Bonds, 2003 (1) Transportation Revenue Bonds, 2004A (1)

Counterparty (Rating) Wachovia/Wells Fargo (Aa2/A+) Wachovia/Wells Fargo (Aa2/A+)Effective Date July 1, 2003 September 30, 2004Maturity Date October 1, 2020 October 1, 2027Notional Amount Outstanding $38,695,000 $73,475,000Variable Rate Received (weighted average) 0.259% 0.179%Fixed Rate Paid (weighted average) 4.010% 3.455%Change in Fair Value - Current Year ($1,522,406) ($3,334,725)Underlying Fair Value at Fiscal Year End ($5,799,070) ($11,717,957)Net Swap Interest ($1,451,437) ($2,406,872)

(1) On May 14, 2008, the Series 2003 and Series 2004A Transportation Revenue Bonds were refunded by the Series 2008B Transportation Revenue Refunding Bonds. The Series 2008B bonds were issued as uninsured variable rate demand bonds, which are remarketed every 7 days.

Credit Risk - As of September 30, 2010, the City was not exposed to credit risk (the risk of economic loss due to a counterparty default on the swap agreements) because each had a negative fair value. However, should interest rates change and the fair values of the swaps become positive, the City would then be exposed to credit risk in the amount of the swap’s fair value.

-106-



J. Derivative Instrument Payments and Hedged Debt (continued) Derivative Instrument Payments and Hedged Debt (continued) Basis Risk - As of September 30, 2010, the swaps expose the City to basis risk (the risk of loss due to the mismatch in interest-earning assets and interest-incurring liabilities). The agreement dated July 1, 2003 calls for the City to pay a fixed rate and receive a variable payment based on the BMA index. If the fixed rate is greater than the rates on the BMA index the City will be liable for the difference. The agreement dated September 30, 2004 calls for the City to pay a fixed rate and receive a variable payment of 67% of the one month LIBOR rate. If the fixed rate is greater than the rates on the LIBOR index, the City will be liable for the difference.

Market Risk - As of September 30, 2010, the swaps expose the City to market risk (the risk of loss due to the pricing of the swap under the current economic environment) because each swap currently has a negative fair value. If the swaps were to be terminated under the current economic conditions, the City would be liable to the counterparty for a make-whole payment in the amount equal to the negative fair value. Using rates as of September 30, 2010 and assuming the rates are unchanged for the remaining term of the bonds, the following table shows the debt service requirements and net swap payments for the City’s hedged variable rate bonds.

Fiscal Year Total BondsEnding 9/30 Principal Interest Total Fixed Variable Net and Swaps

2011 4,535$ 305$ 4,840$ 3,918$ 227$ 4,145$ 8,985$ 2012 5,160 293 5,453 3,740 217 3,957 9,410 2013 4,680 279 4,959 3,555 206 3,761 8,720 2014 5,615 267 5,882 3,349 194 3,543 9,425 2015 5,695 251 5,946 3,136 181 3,317 9,263

2016-2020 42,455 970 43,425 11,194 629 11,823 55,248 2021-2025 28,600 855 29,455 4,372 522 4,894 34,349 2026-2030 16,355 730 17,085 563 427 990 18,075

$113,095 $3,950 $117,045 $33,827 $2,603 $36,430 $153,475

The above chart is based upon actual rates as of September 30, 2010. The bond and swap rates as of fical year end were as follows:

City of Jacksonville $47,775,000 Transportation Revenue Bonds, Series 2003 (refunded by the Series 2008B bonds): The 7-day variable rate reset was 0.270% The BMA rate for swap receipts was 0.278%

City of Jacksonville $80,275,000 Transportation Revenue Refunding Bonds, Series 2004A (refunded by the Series 2008B bonds): The 7-day variable rate reset was 0.270% The 67% of LIBOR rate for swap receipts was 0.174%

Swap Interest PaymentsVariable-Rate Bonds

-107-



K. Conduit Debt: The City issued certain conduit debt in the form of industrial development revenue bonds (IDB's) and private activity bonds (PAB's) to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. Conduit debt refers to certain limited-obligation revenue bonds or similar debt instruments issued by the City for the express purpose of providing capital financing for a specific nongovernmental third party. Although conduit debt bears the name of the City as issuer, it is collateralized by the resources provided by the loan with the third party on whose behalf they are issued. The City acts solely as a conduit issuer with respect to the debt. Conduit debt is collateralized by the property financed and is payable solely from payments received on the underlying mortgage loans. Upon repayment of the IDB's and PAB's, ownership of the acquired facilities transfers to the private-sector entity served the bond issue. None of the assets or revenues of the City are pledged to the payment of IDB's or PAB's and under the constitution and laws of Florida, the City may not legally pledge any of its revenues or assets to the payment thereof. Neither the City, the state, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Effective January 1, 1983, the City pursuant to Chapter 159, Florida Statutes, assumed responsibility for approving applications for IDB's and PAB's. As of September 30, 2010, the City had $707,100,109 IDB's and PAB's total principal outstanding. From time to time, certain issues of such conduit debt may be in default or under investigation as to tax-exempt status of interest on such debt, however, this has no effect on the City's financial position. As of September 30, 2010, the City had a total of $126,826,373 Jacksonville Housing Finance Authority (JHOFA), formerly Duval County Housing Finance Authority (DCHFA), Single Family and Multi-Family Bonds outstanding. The amount of Single Family Housing Revenue Bonds outstanding was $42,581,373. The amount of Multi-Family Housing Bonds outstanding was $84,245,000. Refundings of previous issues make up $33,686,373 of the total amount outstanding. As of September 30, 2010, the City had $603,702,989 of Jacksonville Health Facilities Authority (JHFA) Bonds total outstanding.


-108-



L. Lease Obligations:

At September 30, 2010, the City finished a final capital lease agreement that had been in place. Any future leases would meet the criteria of a capital lease as defined by FASB Statement No. 13, Accounting for Leases, which defines a capital lease generally as one which transfers benefits and risks of ownership to the lessee. Lease agreements contain options that allow the City to cancel the lease if sufficient funds are not appropriated.

The City had copy equipment which was acquired through a capital lease (recorded in the Copy Center Internal Service Fund). Depreciation of the items acquired through this capital lease was $1,154 thousand in fiscal year 2010 and was included in depreciation expense of capital assets.

The assets acquired through capital leases are as follows (in thousands):

Internal Service Fund Copy Center

Asset: Furniture and Equipment Less: Accumulated Depreciation

$ 1,154

(1,154) Total $ -

The City does not have any material operating leases.

M. Interest Expense:

Total interest expense for the fiscal year ended September 30, 2010 was $87.7 million for governmental activities and $15.5 million for business-type activities.

N. Component Unit Long-Term Debt:

The long-term debt presentations for the major component units in Note 8A through Note 8C contains highly summarized data. Detailed debt presentations are available in each major component unit’s separately issued financial report, which may be obtained from the finance offices below. JEA JAA 21 West Church Street P.O. Box 18018 Jacksonville, Florida 32202 Jacksonville, Florida 32229-0018 JPA JTA P.O. Box 3005 100 North Myrtle Avenue Jacksonville, Florida 32206-0005 Jacksonville, Florida 32203

-109-


9. PENSION PLANS The City sponsors two public employee retirement systems (PERS) administered by separate pension boards of trustees that provide retirement, death and disability benefits: the City of Jacksonville Retirement System (JRS) and the Police and Fire Pension Plan. Substantially all employees of the City participate in one of these two plans with less than 1% of City employees participating in the State of Florida Retirement System. The JRS is administered by a nine-member board of Trustees that makes recommendations to the City Council. The City Council is responsible for establishing or amending the pension plan provisions. The Police and Fire Plan is administered independently by a five-member board. The JRS is a cost-sharing, multiple-employer, contributory defined benefit pension plan with a defined contribution alternative. JRS includes both the General Employees Pension Plan (GEPP) and the Corrections Officers Pension Plan (COPP). Effective October 1, 2009, the City added an employee choice defined contribution alternative to the defined benefit plan for all members of the GEPP. The City hired a third party administrator to assist employees with the management of their individual accounts within a number of investment options including model portfolios. All full-time City employees, the employees of JEA and the employees of JHA are eligible to participate in the GEPP upon employment. All certified Corrections Officers employed by the City are eligible to participate in the COPP upon employment. There are no separately issued financial statements for the City of Jacksonville Retirement System. The Police and Fire Pension Plan is a single-employer contributory defined benefit pension plan covering all full-time certified police officers and firefighters employed by the City of Jacksonville Sheriff’s Office and Fire and Rescue Department, respectively. The separately issued financial statements for the Police and Fire Pension Plan are available from Police and Fire Pension Fund, One West Adams Street, Suite 100, Jacksonville, FL 32202.

The Florida Constitution requires plan contributions be made annually in amounts determined by an actuarial valuation and any contribution shortfalls are the responsibility of the City to fund. The Florida Division of Retirement reviews and approves the City’s actuarial report to ensure compliance with actuarial standards and appropriateness for funding purposes. The City of Jacksonville Retirement System and Police and Fire Pension Plan are considered to be a part of the City’s financial reporting entity, as discussed in Note 1.B.. Effective for the fiscal year ending September 30, 1997, these PERS adopted GASB Statement No. 25, Financial Reporting for Defined Benefit Pension Plans, intended to provide information needed to assess (1) funding status of a PERS on a long-term, going-concern basis; (2) progress made in accumulating sufficient assets to pay benefits when due; and (3) whether employers are making actuarially determined contributions. These PERS also follow GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, which require measurement and disclosure of an amount for annual pension cost on the accrual basis of accounting, regardless of the amount recognized as pension expenditures.

-110-


9. PENSION PLANS (continued) A. Summary of Significant Accounting Policies:

(1) Basis of Accounting -The City's pension trust financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions, benefit payments, and refunds are recognized when due and payable in accordance with the terms of each plan. The Florida Constitution requires local governments to make the actuarially determined contributions to their defined benefit plan.

(2) Method Used to Value Investments - Investments are reported at fair value. Securities

traded on a national or international exchange are valued at the last reported sales price at current exchange rates. The fair value of real estate investments is based on independent appraisals or estimates of fair value as provided by third party fund managers. Investments that do not have an established market are reported at estimated fair value as provided by third party fund managers.

Investments are managed by third party money managers while cash and securities are held

by the City’s independent custodian. The City receives a monthly reconciliation of any material differences in pricing by the custodian and manager.


-111-


9. PENSION PLANS (continued) B. Trend Information and Plan Overviews:

(1) Trend information gives an indication of whether the actuarial value of plan assets is increasing or decreasing over time in relation to the actuarial accrued liability for benefits. Historical trend information for all three plans, on a year- by-year basis, is included in the accompanying Required Supplemental Information. The annual pension costs for the fiscal year ended September 30, 2010 were $47.7 and $99.0 million for JRS and PFPF respectively, which was equal to the required contributions. Trend information for each of the City’s three plans is as follows:

Annual Net PensionPension Percentage Obligation

Valuation Date Cost Contributed (Asset)General Employees Pension Plan

9/30/2008 29,371 100% (117) 9/30/2009 29,491 100% (156) 9/30/2010 38,612 105% (1,939)

Corrections Officers Pension Plan9/30/2008 4,329 100% (21) 9/30/2009 5,268 100% 146 9/30/2010 9,097 104% (394)

Police and Fire Pension Plan9/30/2008 65,389 100% - 9/30/2009 67,993 100% - 9/30/2010 99,018 100% -

(in thousands)EMPLOYER CONTRIBUTIONS

Actuarial Actuarial Unfunded Annual Unfunded Value of Accrued Actuarial Accrued Funded Covered Actuarial Liability as

Valuation Date Assets Liability Liability Ratio Payroll % of Covered PayrollGeneral Employees Pension Plan

9/30/2008 1,673,435$ 2,004,279$ 330,844$ 83.49% 262,345$ 126.1%9/30/2009 1,591,345 2,064,464 474,119 77.05% 276,257 171.6%9/30/2010 1,640,892 2,163,080 522,188 75.86% 322,531 161.9%

Corrections Officers Pension Plan9/30/2008 83,056 137,830 54,774 60.26% 26,334 208.0%9/30/2009 86,358 181,031 94,673 47.70% 27,661 342.3%9/30/2010 97,464 204,384 106,920 47.69% 32,329 330.7%

Police and Fire Pension Plan9/30/2008 894,903 1,692,975 798,071 52.86% 148,277 538.2%9/30/2009 855,997 1,753,946 897,949 48.80% 155,558 577.2%9/30/2010 861,243 1,840,753 979,510 46.79% 158,046 619.8%

FUNDING PROGRESS(in thousands)

(2) The following page is an overview of selected plan elements for the City’s three defined benefit plans.

-112-


9. PENSION PLANS (continued) B. Trend Information and Plan Overviews: (continued)

AS OF SEPTEMBER 30, 2010 Jacksonville Retirement System

General Corrections Police Employee Officers and Fire

Pension Plan Pension Plan Pension PlanActuarial reports:

Date of last actuarial valuation October 1, 2010 October 1, 2010 October 1, 2008Actuarial method Entry age Entry age Entry age

Membership:Retirees and beneficiaries currently receiving benefits 4,504 55 1,953 Deferred Retirement Option (DROP) participants - 109 361 Terminated employees vested, not yet receiving benefits 97 1 39 Active employment plan members: Vested 3,694 374 1,959 Non-vested 2,586 314 661 Total plan membership 10,881 853 4,973

Benefit structure:Accrual rate: Years one through twenty 2.5% 3.0% 3.0% Years twenty-one and after 2.5% 2.0% 2.0%Years of service required to vest 5 5 5Years of service required- normal retirement 30 20 20Final average pay parameters 3 years 3 years 2 yearsMaximum benefit as % applied to final average pay 80% 80% 80%Cost of living (COLA) adjustments: Years delay after retirement 5 1 1 Annual percentage increase 3% 3% 3%DROP structure: Options Back Forward Forward Maximum duration- years 5 5 5 Earnings rate on benefit payments held in trust actual with +4% actual with 8.4% guaranteed

ceiling, -4% floor 0% floorPlan assumptions:

Earnings rate 8.4% 8.4% 8.5%Mortality Table in use RP-2000 RP-2000 1994Salary growth 3.5% 3.5% 5.5%Market smoothing practices: Term - years 5 5 5 Recognition timing 5/15 year 1 to 5/15 year 1 to 5/15 year 1 to

1/15 year 5 1/15 year 5 1/15 year 5Financial information (in millions):

Annual contributions 2009-10: City 24$ 10$ 85$ Other participating employers 17$ N/A Other sources - - 10$ Employer contribution stated as percentage of pay: FYE 9-30-09 10.43% 17.16% 32.11% FYE 9-30-10 13.50% 31.78% 49.60% FYE 9-30-11 13.50% 31.78% 49.60% Employee contribution stated as percentage of pay 8% 8% 7%Covered Payroll 323$ 32$ 158$ Benefit payments (including DROP payments) 116$ 7$ 120$ Assets (net of securities lending) as of September 30, 2010: Market value 1,456$ 90$ 971$ Actuarial value 1,641$ 97$ 861$ Unfunded Actuarial Accrued Liability- September 30, 2010 522$ 107$ 980$ Funded Ratio 75.86% 47.69% 46.79%

-113-


9. PENSION PLANS (continued) C. City of Jacksonville Retirement System: Financial Information (1) The Statement of Fiduciary Net Assets – Jacksonville Retirement System - General Employees

and Corrections Officers Plan for the year ended September 30, 2010 is as follows (in thousands): ASSETSEquity in cash and investments........................................ $ 45,214Receivables 7,139 Investments, at fair value 1,511,529 Capital assets, net of depreciation.................................... 1 Securities Lending Collateral........................................... 107,046 TOTAL ASSETS............................................................ 1,670,929

LIABILITIESObligations Under Securities Lending Agreement..... 108,319 Accounts payable and accrued liabilities................... 4,817 Accrued Compensated Absences.................................. 69 Due to Drop Participants........................................... 10,068

TOTAL LIABILITIES.................................................. 123,273

NET ASSETS HELD IN TRUST FOR PENSION BENEFITS.............................................. $ 1,547,656

(2) The Statement of Changes in Fiduciary Net Assets – Jacksonville Retirement System for the year ended September 30, 2010 is as follows (in thousands): ADDITIONSContributions:

Employer............................................................................ $ 50,712Plan Member....................................................................... 29,081

Total contributions......................................................... 79,793 Other additions………………………………………………… 522 Investment income…………………………………………….. 157,094 Securities Lending................................................................... 423 TOTAL ADDITIONS............................................................ 237,832

DEDUCTIONSBenefits payments.................................................................... 118,223 DROP Benefits........................................................................... 5,045 Refunds of contributions.......................................................... 9,118 Administrative expenses.......................................................... 1,335 TOTAL DEDUCTIONS........................................................ 133,721

Net change in net assets...................................................... 104,111

NET ASSETS, BEGINNING OF YEAR.............................. 1,443,545

NET ASSETS, END OF YEAR............................................ $ 1,547,656

-114-


9. PENSION PLANS (continued) D. Police and Fire Pension Plan

(3) Net assets available for benefits are designated pursuant to an agreement between the Police and Fire Pension Plan Board of Trustees and the City effective April 1, 2000, and includes two actuarially computed components, the City Stabilization Account and the Enhanced Benefit Account. The City Stabilization Account, which has a balance of $339 thousand as of September 30, 2010, was established for the purpose of cushioning actuarial losses in the base benefits fund and giving the City greater flexibility in its funding of the Plan. The Enhanced Benefits Account which has a balance of $15,306 thousands of September 30, 2010, was established to hold any remaining State premium tax refunds not assigned to offset City contribution requirements. The base benefits fund consists of the remaining assets pledged to provide fund benefits.

(4) During the fiscal year, the Plan received a remittance from the State of Florida in the amount of $8.8 million pursuant to Chapters 175 and 185, Florida Statutes. Such remittances, which are reported as State insurance contributions in the Statement of Changes in Fiduciary Net Assets are generally earmarked under state policy and legal guidance for the purpose of granting enhanced benefits to public safety pension plans throughout the State of Florida. The remittances received by the Plan are governed by the Restated Agreement executed between the Plan and the City.

The Agreement stipulated that $6.3 million of the $8.8 million remittance received during the fiscal year is to be allocated for expenditures authorized within the current benefit structure, with the remaining $2.5 million being uncommitted and earmarked for use in funding future benefits and/or ad-hoc, non-recurring expenditures as authorized by the Trustees of the Plan. During the fiscal year, $1.7 million of the $2.5 million uncommitted element was expended for ad-hoc non-recurring expenditures.

E. Defined Contribution Plan As of October 1, 2009, the City created by ordinance a Defined Contribution (DC) plan within the Jacksonville Retirement System for GEPP participants as an employee choice alternative to the DB plans. Both employer and employee contributions to the DC plan stated as a percentage of pay were 7.7% and totaled $99 and $91 thousand for the 2009-10 fiscal year. Employees vest in the employer contributions to the plan at 25% after two years, and 25% per year thereafter until fully vested after five years of service. Employees can electively change from the DC plan to the DB plan, or vice versa, up to three times within their first five years of participation.

-115-


9. PENSION PLANS (continued) F. Florida Retirement System

(1) Plan Description - The City also participates in the Florida Retirement System (FRS), a multiple-employer cost-sharing retirement system which covers less than 1% of the City’s full-time employees. FRS is a defined-benefit contributory retirement plan, administered by the State of Florida, Division of Retirement. The City payroll for employees covered by FRS was $3.2 million during the fiscal year; the City’s total payroll for all employees was $460 million.

The System provides vesting of benefits after six years of creditable service. Members are eligible for normal retirement after they have met one of the following; (1) after 30 years of service regardless of age; (2) six years of service and age 62; or (3) 25 years special risk service (age 55 if not continuous). Early retirement may be taken any time after completing six years of service; however, there is a 5% benefit reduction for each year prior to normal retirement. Benefits are computed on the basis of age, average final compensation and service credit. Average final compensation is the average of the five highest years of earnings. The System also provides death and disability benefits. Benefits are established by state statutes.

(2) Contributions – For the fiscal years ended September 30, 2010, 2009, and 2008, the City contributed $584,000, $562,000, and $569,000 respectively, to the System for covered employees. For the fiscal year ended September 30, 2010, the contributions represented less than 1% of the System’s total contributions required by all participating employers of $3.2 billion. Contributions in fiscal years 2009 and 2008 were also less than 1% of the total contributions required by all participating employers, which amounted to approximately $3.0 and $2.3 billion per year.

The funding methods and the determination of benefits payable are provided in various Acts

of the State Legislature. These Acts require that employers make contributions actuarially determined at the rates in effect at September 30, 2010, of 10.77% of the compensation for regular members, 23.25% for special risk members, 18.63% for elected county officials, 14.57% for senior management and 12.25% for DROP Plan members.

(3) Trend Information - Ten-year historical trend information showing the System’s progress in

accumulating sufficient assets to pay benefits when due is presented in the System’s June 30, 2010 annual financial report. The report may be obtained from the State of Florida, Department of Management Services, Division of Retirement P.O. Box 9000, Tallahassee, Florida 32315-9000.

-116-


10. POST EMPLOYEMENT BENEFITS OTHER THAN PENSION (OPEB) Plan Description: The City provides retirees with the option to purchase health insurance from the

City’s single employer, experience rated health insurance contract plan (Plan) that provides medical benefits to active and eligible retirees at the City’s group rate as mandated by Florida Statute 112.0801 and therefore has an implicit rate subsidy benefit for the retirees’ participation. As of the valuation date, the Plan had approximately 8,140 active participants and 1,907 retirees receiving benefits. The Plan does not issue a separate publicly available financial report. Funding Policy: To date, the City has followed a pay-as-you-go funding policy, contributing only those amounts necessary to provide for its portion of current year benefit costs and expenses plus any addition to the reserve for accrued costs incurred but not yet reported, as determined as part of the insurance contract. The contribution requirements of Plan members are established by the City. The City pays any remaining required amounts after contributions of plan members are taken into account. Currently, retired members pay the full premium associated with the coverage elected; no direct City subsidy is currently applicable; however, there is an implicit cost discussed below. Spouses and other dependents are also eligible for coverage, and the member is responsible for payment of the applicable premiums. Plan members contributed $4.7 million in premiums for fiscal year 2010, representing 41.9% of the total fiscal year 2010 OPEB cost. State of Florida law prohibits the City from separately rating retirees and active employees. The City therefore assigns to both groups equal, blended-rate premiums. Although both groups are assigned the same blended rate premiums, GAAP requires the actuarial liabilities to be calculated using age-adjusted premiums approximating claim costs for retirees separate from active members. The use of age-adjusted premiums results in the full expected retiree obligation recognized in this disclosure. Annual OPEB Cost and Net OPEB obligation: The City’s annual other postemployment benefit cost (expense) is calculated based on the annual required contribution of the employer (ARC). The City has elected to calculate the ARC and related information using the Entry Age Normal Salary Based Cost Method. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and to amortize any unfunded actuarial liability (or funding excess) over a period not to exceed 30 years. Annual requirements include a 4.5% discount rate, compounded annually, based on assumptions that the plan will be unfunded. The annual health care cost trend rate was assumed at 9% at September 30, 2010 grading down by 0.5% each year until an ultimate health care cost trend rate is reached in 2018 of 5.0%. The salary increase assumption is 4% per year. The actuarial accrued liability (AAL) was determined as of September 30, 2010, based on the above assumptions and cost method, and applied to member date current at September 30, 2010. Liabilities were developed based on age adjusted costs for retirees currently receiving Plan benefits as of September 30, 2010, with an AAL calculated to be $140 million, which is unfunded (or 0% funded). The annual covered payroll is $394 million, resulting in an unfunded AAL of 35.5%. The actuarial calculations reflect a long-term perspective using methods and assumptions that are designed to reduce short-term volatility in AAL and actuarial value of assets. The Plan provisions affecting the valuation were those in effect on September 30, 2010.

-117-


10. POST EMPLOYEMENT BENEFITS OTHER THAN PENSION (OPEB) (continued) Government Accounting Standards Board (GASB) Statement 45 results are not based on the assumption that all members terminate service as of the valuation date, but rather on the assumption that the various forces of decrement-future disablement, future mortality, future termination of employment, and future retirement-continue to be operative.

Plan Obligation: (in thousands) 2010Annual Required City Contribution (ARC) 11,077$ Interest on Plan Obligation 690 Adjustment to ARC (548) Annual Plan Retiree Cost 11,219$ Contributions Made (4,704) Change in Plan Obligation 6,515 Plan Obligation Beg of Year 15,342 Plan Obligation End of Year 21,857$

At fiscal year end 2010, the City accrued $21 million in the Governmental Statement of Net Assets, $737,000 in the Business-Type Statement of Net Assets, $43,000 in the Jacksonville Economic Development Commission (JEDC), and $3,000 in the Jacksonville Housing Finance Authority (JHOFA) two discreetly presented component units. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2010 and the preceding years are as follows: (in thousands)

PercentageFiscal Year Annual OPEB of Annual OPEB Net OPEB

Ended Cost Cost Contributed Obligation9/30/2007 13,280 37.9% 8,243 9/30/2009 11,010 35.5% 15,342 9/30/2010 11,219 41.9% 21,857

As of September 30, 2010, the most recent actuarial valuation date, the plan was 0% funded. The actuarial accrued liability for benefits was $139.6 million, and the actuarial value of assets was $0, resulting in an unfunded actuarial liability (UAAL) of $139.6 million. The covered payroll (annual payroll of active employees covered by the plan) was $393.8 million and the ratio of the UAAL to the covered payroll was 35.5 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

-118-


11. DEFERRED COMPENSATION PROGRAM AND 401A PLAN The City offers its employees a deferred compensation program created in accordance with Internal Revenue Code (IRC) Section 457 and Chapter 112.215, Florida Statutes. During the year ended September 30, 1999, the City complied with the requirements of subsection (g) of IRC Section 457 and, accordingly, all assets and income of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. Pursuant to the provisions of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the financial statements do not display deferred compensation balances in an Agency Fund. The City also provides a defined contribution plan under the Internal Revenue Code, Section 401(a). The plan provides an employer-paid, pre-tax allowance for employees under certain union contracts, managerial and confidential, and some appointed personnel. It also allows employees to participate on a post-tax basis. This benefit does not replace a pension plan, or serve in lieu of a qualified pension plan. The City contributes from .25% to 1.00% of the base salary of the employee depending on the bargaining unit and specific leave plan. For the year ended September 30, 2010, the City contributed $138,549 for 401A plan benefits.

12. RISK FINANCING

The City is exposed to various risks of loss related to torts, theft, damage to and destruction of assets, and natural disasters. The Risk Management Division (“Division”) administers the public liability (general liability and automobile liability) and workers’ compensation self-insurance program (“Program”) covering the activities of the City general government, JEA, Jacksonville Housing Authority, Jacksonville Port Authority, and the Jacksonville Aviation Authority. The Program’s self-insurance fund provides coverage for the workers’ compensation and tort liability of the City, its officers, employees, or agents. It is established pursuant to Jacksonville City Ordinance, Chapter 128. The Program is a combination of self-insurance, coupled with a layer of excess coverage to mitigate aberrant and substantial unexpected losses. While the City self-insures for automobile liability and automobile first party property damage, general liability and workers’ compensation; it transfers its risk through the purchase of insurance for its other exposures.

-119-


12. RISK FINANCING (continued)

Major Categories of Policies purchased to transfer risk

Type of Policy Principal Named Insured (1)

Excess Workers’ Compensation And General Liability Policy City, JEA, JPA, JHA, JAA Property (Real & Personal) City, JPA Boiler & Machinery City, JPA Crime/Employee Dishonesty Policy City, JAA, JPA, JHA Aircraft Hull and Liability Policy City, JEA, JPA, JHA, JAA Watercraft Hull and Liability Policy City, JEA, JPA, JHA Wharfinger Policy City Fine Arts Policy City Out of State Automobile Liability City (JSO only) (1)City – City of Jacksonville, JEA – JEA, JPA - Jacksonville Port Authority, JHA - Jacksonville Housing Authority, JAA - Jacksonville Aviation Authority, JSO – Jacksonville Sheriff Office The following schedule indicates the types of insurance and reinsurance acquired; the deductible or retention level (per occurrence), and where appropriate the limit of the reinsurance coverage acquired (per occurrence):

Retention Level Coverage Policy Limit $5,000,000 General Liability $1,000,000(1) $1,200,000 Employer’s Liability $3,000,000(1) $1,200,000 Workers’ Compensation Statutory $100,000 Property (Real & Personal) $500,000,000(2) (3) (4) $50,000 Boiler & Machinery $100,000,000 $50,000 Employee Dishonesty Bond $3,000,000 (Includes computer fraud) $- Aircraft Liability $20,000,000 $2,000 Watercraft (P & I) $1,000,000 $1,000 Wharfinger Liability $5,000,000 $1,000 Fine Arts-Scheduled $145,625 $- Out of State Automobile Liability $1,000,000(5)

(1)Under the General Liability, and Employer’s Liability policies there is an annual $3,000,000 aggregate limit. In addition to the deductible amounts, the City is responsible for the excess payments above the policy per occurrence and aggregate limits.

(2)The property retention and limits are on a per occurrence basis.

(3)The policy deductible for named windstorm losses is equal to 5% of total values of the locations involved in the occurrence, subject to a minimum retention of $500,000 and maximum of $25M.

(4)The property retention and limits are shared between the entities. (5)The policy has a combined single limit of $1M for property damage and bodily injury.

-120-


12. RISK FINANCING (continued) The Division performs the following functions internally: loss prevention, workers’ compensation claims, general liability and automobile liability claims, purchase of insurance for its other exposures, and related management activities. Annually, as of September 30, the Program has a third party actuary review of the claim history for all open claim years. The actuary projects the ultimate claim payment obligation (including the incurred but not reported claims and claim development) for each year’s claim experience and the probable loss fund cost for the New Year. These projections are provided as a range of estimates (low, middle and high), with a discounted alternative for each of the three estimates. The liability is established at the middle undiscounted range. The following table reflects the discounted and undiscounted estimates:

Estimated Risk Management Liability (1) (3)

(In thousands)

Discounted (2) Undiscounted Low $59,555,548 $68,839,815 Middle $66,172,831 $76,488,683 High $72,790,114 $84,137,551

(1) Actuarial projection excludes property liability. (2) 3% yield on investments assumption (3)Actuarial ULAE projections are $6,283,034 discounted and $7,168,079 undiscounted. Actuarial ULAE projections are not included and not based on a range of estimates.

The probable loss fund estimate is used to budget the self-insurance fund for general liability, automobile liability, and workers’ compensation. As an internal service fund, charges are billed to the various funds and component units of the City. If an adjustment is necessary to increase the reported fund liability to reflect the actuary’s estimated ultimate claim payment, then the self-insurance fund will either draw upon its accumulated net assets and/or initiate a year-end billing to the City itself and component units of the City. The City’s practice of cash funding the projected ultimate claims payment is intended to temporarily accumulate net assets, which can be used to meet changes in estimates over time. Projected ultimate claims payment experience is as of the end of each fiscal year, even though some payments may not be made until a later date. The City maintains separate fiscal year accounting, which allows any excess revenues available to be returned to the City itself, and component units and the accumulation of an operating reserve authorized by the City of Jacksonville Ordinance Code Section 106.106. As of September 30, 2010, the City has available excess revenues in the Self-Insurance fund of $4,729 (in thousands) and an operating reserve in the amount of $5,346, (in thousands) for a combined net asset of $10,075 (in thousands). In the Supplemental Section of the City’s Comprehensive Annual Financial Report, is a trend information schedule for general/auto liability and workers’ compensation, entitled “Schedule of Self-Insurance Ten Year Claims Development Information,” which reflects the claims paid and liability projection development of each of the most recent ten years as of September 30, 2010.

-121-


12. RISK FINANCING (continued)

The following schedule presents the changes in aggregate claims liabilities for the past two years of the self-insurance fund’s general liability, automobile liability, and workers’ compensation.

SELF-INSURANCE FUND

CHANGES IN AGGREGATE CLAIMS LIABILITIES (including ULAE) FOR THE YEARS ENDING SEPTEMBER 30

(in thousands) General/Auto Workers Liability Compensation Totals

2010 2009 2010 2009 2010 2009

Unpaid claims and claims adjustment expenses at beginning of fiscal year $ 11,195 $ 11,953 $ 75,537 $ 70,972 $ 86,732 $ 82,925 Incurred claims and claim adjustment expenses: Provisions for insured events of the current fiscal year 3,313

3,586 8,504 8,973 11,817 12,559

Increases (decreases) in provision for insured events of prior fiscal years 878 257 5,918 9,077 6,796 9,334 Total incurred claims and claim adjustment Expenses 4,191 3,843 14,422 18,050 18,613 21,893

Payments: Claims and claim adjustment expenses attributable to insured events of current

fiscal year 1,215 1,428 3,406 3,147 4,621

4,575 Claims and claim adjustment expenses attributable to insured events of prior

fiscal year 3,681 3,173

13,386

10,338 17,067 13,511

Total Payments 4,896 4,601 16,792 13,485 21,688 18,086

Total unpaid claims and claim adjustment

expenses at end of fiscal year $

10,490 $ 11,195 $ 73,167 $ 75,537 $ 83,657 $ 86,732

(The remainder of this page is intentionally left blank.)

-122-


13. OTHER REQUIRED INDIVIDUAL FUND AND COMPLIANCE DISCLOSURES A. Compliance with Finance Related Legal and Contractual Provisions:

In the opinion of management, the City has no violations of finance related legal and contractual provisions.

B. Fund Deficits: The following individual funds had a fund deficit at September 30, 2010, (in thousands): Fund Balance/ Net Asset Non-Major Enterprise Fund: Baseball Stadium (161) Internal Service Funds: Copy Center (182) The Baseball Stadium net asset deficit is due to transferring $29.3 million net book value for assets and $30.6 million of related debt to the enterprise fund from governmental activities city wide. The transfer was made to align all activity for the arena into one fund. The deficit will be eliminated over time as the bond principal payments will be greater under the debt schedule as compared to the reduction in net book value for the assets due to the straight line depreciation recorded over the life of the assets in the fund. The 2010 net asset figure represents an $18 thousand improvement from the 2009 deficit of ($179) thousand. The Copy Center’s rates are being reviewed and will be adjusted to eliminate the fund deficit in FY2010. The 2010 net asset figure represents a $250 thousand improvement from the 2009 deficit of ($432) thousand.


-123-


13. OTHER REQUIRED INDIVIDUAL FUND AND COMPLIANCE DISCLOSURES C. Landfill Closure and Postclosure Care Costs:

The State of Florida's Solid Waste Management Act of 1988 and regulations of the U.S. Environmental Protection Agency (EPA) and the State of Florida Department of Environmental Protection (FDEP) require the City to be responsible for constructing and maintaining the final landfill cover, monitoring ground water and methane gas, and continuing leachate management 30 years after its municipally owned landfills stop accepting solid waste and are closed. The estimated total costs of municipal solid waste landfill (MSWLF) closure and post closure (long-term) care costs reported by the City are based upon professional consulting engineers' studies prepared annually pursuant to rules promulgated by EPA and FDEP. However, existing EPA and FDEP closure and long-term regulations may change which might require the City to revise its MSWLF cost estimates used in the future. MSWLF costs, for open landfills, are recognized in accordance with GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Post Closure Care Costs. A liability of the Solid Waste Disposal Enterprise Fund is recorded based upon landfill capacity used at fiscal year-end and a current operating expense of the Fund in the fiscal year in which the MSWLF costs are recovered through earned, operating revenue. The estimated liability for MSWLF closure and long-term care costs at September 30, 2010, is (in thousands):

Balance,

September 30, 2009

Accrual

of Costs

Payment

of Costs

Balance, September 30,

2010 Inactive Landfills - Long-term care costs

$ 10,290 $ (469) ($ 621)

$ 9,200

Active Landfill - Closure and Long-term care

costs 53,378 3,247 -

56,625 Total Landfill Liability

$ 63,668

$ 2,778

($621)

$ 65,825 At September 30, 2010, the City’s total liability for landfill closure and long-term care was $65.8 million. Of this amount $56.6 million relates to the active landfill, Trail Ridge, and $9.2 million relates to the inactive landfills, North and East. Expenses for closure and long-term care costs are funded from future operating revenues of the Solid Waste Disposal fund and bond proceeds. As noted in Note 1. P, the application of SFAS No. 71 resulted in certain cost being capitalized and amortized to later periods. The City obtained bond proceeds to support closure and long-term care cost for North and East landfills and Picketville Waste Site. At September 30, 2010 the deferred balance of the capitalized cost is $16.9 million, which during the year the City amortized $2.8 million.

-124-


13. OTHER REQUIRED INDIVIDUAL FUND AND COMPLIANCE DISCLOSURES C. Landfill Closure and Long-term Care Costs: (continued)

Active Landfill – Trail Ridge The closure and long-term liability for Trail Ridge as of September 30, 2010 is $56.6 million which represents an increase of $3.3 million compared to preceding year. This increase resulted from adjustments for inflation and current annual closure and long-term care cost estimates. The percentage of landfill capacity used is estimated to be 73%. The City expected to close the landfill in approximately two years (2012); however, it is presently extending the life of the landfill by increasing the capacity (Phase III) and the life to 24 more years. Inactive Landfills – North and East North and East landfills closed October 1999 and April 1992, respectively. The long-term liability for North and East as of September 30, 2010 is $7.3 million for 8 years and $1.9 million for 5 years, respectively. When compared to the preceding year, the liability balances decreased $.7 million and $.5 million, respectively, due to adjustments for current annual closure cost estimates and cost paid for performing and monitoring closure work. Annually, the City is required by Chapter 62-701.630 of the Florida Administrative Code, to accumulate resources for payment of closure and long-term care cost. The City is in compliance with these requirements. As of September 30, 2010, $30,658,529, which includes $6,251,943 for accelerated payments, have been accumulated for payment of closure and long-term care cost (see summary below). Accelerated payments are payments in excess of the required financial assurance balances which are held in reserves for contingencies and are used to offset future operational cost.

Trail Ridge

North

East

Total Current cost of closure $ 23,111,115

$ -

$ -

$ 23,111,115

Annual cost of long-term care -

907,566

387,905

1,295,471

Accelerate funds above State Minimum 6,251,943

-

-

6,251,943 Total Balance in escrow account $ 29,363,058

$907,566

$387,905

$ 30,658,529

-125-


14. LESSOR OPERATING LEASE A. Jacksonville Jaguars, Inc. - The City has entered into a lease dated September 7, 1993, pursuant

to which the City leases EverBank Field, a City owned stadium, and adjacent practice facilities to the Jacksonville Jaguars, Inc. (Jaguars) for a period of 30 years from the first National Football League (NFL) regular season play in 1995; Amendment 5, executed September 6, 2002, extends the lease an additional five years.

The lease entitles the Jaguars to use the stadium on game days, for practices and summer training camp, and for the period necessary before game days. During other periods of time, the City has the right to use the stadium, except for certain administrative spaces, training facilities, suites, and other areas that are for the exclusive use of the Jaguars. For the first five years, rent is deferred in the amount of $250,000 per year; in years 6-10 rent is $500,000 per year; in years 11-20 $1,000,000; and in the final 15 years $1.25 million, including the lease extension. Amendment 8, executed January 2006, reduced the total Jaguars rent obligations by $8,600,000, which was provided through rental reductions in the amount of $1,433,333 for six payments beginning with the November 2005 payment through the June 2008 payment. Amendment 8 also reduces supplemental lease obligations, with the City’s acceptance of payment from the Jaguars in the amount of $10,197,891 for the full satisfaction of amounts due for Super Bowl net revenues. Rents from years 11 through the end of the lease are subject to escalation based on one-half of any increase in the Consumer Price Index, but not to exceed 2.5% per year. In addition, the Jaguars are obligated to pay supplemental rent in an amount equal to the annual debt service incurred by the City for certain costs of renovation of $53.1 million requested by the Jaguars over a 30 year period with interest computed on a tax-exempt basis; inclusive of Amendment 7 executed May 27, 2004. The lease generally permits the City to retain revenues from City events at the stadium, with some exceptions. Amendment 8 outlines provisions for advertising revenue generated from electronic signage for different stadium functions. The City is required to provide electricity, water and sewer services for the stadium at its expense. The City must maintain the stadium and all leasehold improvements. Per Amendment 8, the City agreed to provide $1,000,000 for additional electronic signs. The City is required to pay for game day personnel, excluding concessions, on the days of Jaguar games. Amendment 8 gives the Jaguars the responsibility to provide concessions to all events within the concessions area. The Jaguars retain all net revenues from concessions and similar sales on NFL game days. The lease obligates the Jaguars to maintain its franchise at the stadium in Jacksonville and to not relocate unless it pays the City certain guaranteed amounts. Amendment 9 outlines a revenue sharing agreement for the stadium naming rights and provides the parameters for the marketing of the stadium name. Also, Amendment 9 details additional advertising rights and allows for certain fixed signage at the stadium. However, the subsequent naming rights agreement with EverBank eliminated the City participation in revenue from the stadium naming rights.

-126-


14. LESSOR OPERATING LEASE (continued) A. Jacksonville Jaguars, Inc. (continued) Amendment 10 outlines the accepted procedures for the use of the City established Sports Complex Capital Maintenance Fund. The agreement allows the Jaguars to advance fund certain capital, repair and maintenance projects at the stadium and receive reimbursement from the City. Amendment 10 also establishes the procedures for the creation of the related capital improvement plan.

A summary of scheduled lease payments is as follows: Year Payment 2011 4,127,519 2012 4,091,334 2013 4,047,200 2014 4,006,519 2015 3,960,040

2016 - 2020 23,673,541 2021 - 2025 19,902,830 2026 - 2030 29,812,663

The Jaguars Operating Lease is subject to the rental provisions of GASB #13 – Accounting for Operating Leases with Scheduled Rent Increases. The Base Rental associated with the startup of operations and the initial capital costs for transforming the stadium to an NFL stadium has deferred rents for the first five years and then scheduled rent increases throughout the term of the lease, Amendment #8 in FY2005 providing rental credits of $2,866,666 in FY2006, FY2007, and FY2008, which reduced the rental payment in each of those years. Paragraph 6 of GASB #13 states that “Sometimes an operating lease with scheduled rent increases contains payment requirements in a particular year or years that are artificially low when viewed in the context of earlier or later payment requirements.” This occurred with the base rental of the Jaguars contract. Paragraph 6 guidance states that the operating lease transactions should be measured utilizing one of two measures, with Paragraph 6a being “The operating lease transactions may be measured on a straight-line basis over the lease term.” The City has recorded a deferred rent receivable of $12,758,445 due to the application of GASB #13 based on the difference in the actual rent paid and the calculated straight line rent. In analyzing the lease, there are two conditions that could affect the collection of the deferred rent receivables. The lease has been modified ten times during the fourteen years of the lease, providing for rent reduction as noted in amendment #8. Based on this history of amending the lease, there is uncertainty and a potential for other rental reductions or deferments which could put the collection of the deferred rent receivables at risk. Additionally, the lease has several paragraphs concerning early termination of the contract and provides the City of Jacksonville reasonable liquidated damages in the circumstance of the Jaguars leaving the City. This termination provision, in effect, makes the rental collection subject to a year by year basis. The City has an offsetting allowance for the entire $12,758,445 deferred rent receivables. As payments are made, the deferred receivables and allowance are adjusted accordingly.

-127-


14. LESSOR OPERATING LEASE (continued) B. Shands Jacksonville

Under an agreement with a not-for-profit corporation, Shands Jacksonville, formerly known as University Medical Center, the City leases to Shands certain capital assets, principally land and buildings, over a term to September 30, 2027 with an option to renew for an additional forty years to 2067 at $1 per year. In addition, Shands is to be a full service hospital in support of the indigent care programs of the City of Jacksonville and Duval County under the agreement. Shands is to maintain, in good condition, and make improvements and betterments to the hospital as necessary over the life of the lease. At termination of the lease, all leased property shall revert to the City.

15. LITIGATION, CONTINGENCIES, AND COMMITMENTS

A. Litigation: The City is named as party in legal proceedings which occur in the normal course of government operations. Such litigation includes, but is not limited to, claims asserted against the City arising from alleged torts, alleged breaches of contract, condemnation proceedings and other alleged violations of state or federal laws.

It is not possible at the present time to estimate the ultimate outcome or liability, if any, to the City for these proceedings. However, it is the City’s opinion that ultimate liability in these matters, if any, is not expected to have a material adverse effect on the City’s financial position.

B. Grants and Contracts: The City participates in various federal and state assisted grant programs that are subject to review and audit by the grantor agencies. Entitlement to these resources is generally conditional upon compliance with the terms and conditions of grant agreements and applicable federal and state regulations, including the expenditure of resources for allowable purposes. Any disallowance resulting from a federal or state audit may become a liability of the City. All City agencies and departments are required to comply with various federal regulations issued by the U.S. Office of Management and Budget if such agency or department is a recipient of a federal grant, contract or their sponsored agreement. Certain agencies and departments may not be in total compliance with these regulations. Failure to comply may result in questions concerning the allocability of related direct and indirect charges pursuant to such agreements. It is believed that the ultimate disallowance pertaining to these regulations, if any, will be immaterial to the overall financial condition of the City.

C. Self-Insurance: Through the City’s Risk Management Division, the City maintains an insurance and self-insurance program (See Note 12). The Division administers the public liability (general liability and automobile liability) and workers’ compensation self-insurance program covering the activities of the City general government, JEA, Jacksonville Housing Authority, Jacksonville Port Authority, and Jacksonville Aviation Authority under the City’s Ordinance Code Chapter 128. The City purchases commercial insurance for workers’ compensation claims in excess of $1.2 million. Under the laws of the State of Florida, the City has sovereign immunity for state tort claims in excess of $100,000 per person, and $200,000 per occurrence.

-128-


15. LITIGATION, CONTINGENCIES, AND COMMITMENTS (continued) C. Self-Insurance: (continued)

The City retains coverage on all other types of insurance including real and tangible property. The self-insured programs of the City, which are included in the Self-Insurance Internal Service Fund, are funded on a dollar-for-dollar basis determined actuarially for the estimated losses for claim development and incurred but not reported claims, and unallocated loss adjustment expenses. Claims are reserved on an ultimate probable cost basis.

D. Pollution Remediation:

Governmental Accounting Standards Board Statement No. 49 Accounting and Financial Reporting for Pollution Remediation Obligations (GASB 49) provides accounting and financial reporting for pollution remediation obligations. While GASB 49 does not require the City to search for pollution, it does require the City to reasonably estimate and report a remediation liability when any of the following obligating events has occurred:

• The City is compelled to take remediation action because pollution creates an imminent endangerment to public health,

• The City is in violation of pollution prevention, • The City is named, or has evidence that it will be named as responsible party by a

regulator, • The City is named, or has evidence that it will be named in a lawsuit to enforce

cleanup, or • The City commences or legally obligates itself to conduct pollution remediation

activities. The City recorded a pollution remediation liability as of September 30, 2010 of approximately $150.7 million (See Note 8. C for schedule) using the expected cash flow technique. Under this technique, the City estimated a reasonable range of potential outlays and multiplied those outlays by their probability of occurring. However, this liability could change over time due to changes in cost of goods and services, changes in remediation technology, or changes in laws and regulations governing the remediation efforts. Whitehouse Waste Oil Pits Superfund Site The US Environmental Protection Agency (USEPA) identified the City as a potential responsible party (PRP) at the Whitehouse Waste Oil Pits Superfund Site in western Duval County. The City and other (PRPs) participated in the USEPA’s Pilot Allocation Project which resulted in the USEPA assuming as much as 65% of the liability at the site, with the City being allocated less than 10% of the liability.

-129-


15. LITIGATION, CONTINGENCIES, AND COMMITMENTS (continued)

D. Pollution Remediation: (continued) The USEPA estimates $20 million site costs, with the City paying approximately $2 million over the life of the project (which includes a 30 year operations and maintenance period). Site work was substantially complete in October 2006 when operations and maintenance work began. The PRPs have more than $1.9 million on deposit to fund operations and maintenance; however until USEPA officially declares the remedial action complete, the prospect for additional work remains. In January 2008, the City met with adjacent property owners to negotiate the purchase of additional private property to account for the location of the remedial berm. Negotiations are ongoing, with the estimated additional purchase within the limits of the remaining funds contributed by PRPs. The City and other PRPs settled with the USEPA which had sought reimbursement of its cost of a removal action in 1995, regarding the Bill Johns Waste Oil Site. The City's liability is based on contracting with the waste oil service to empty used oil collection points operated under a recycling grant from the State. Florida Department of Environmental Protection (FDEP) has submitted a demand to the PRPs to assess the site further to determine the extent of contamination that may remain after the removal action. The liability to FDEP is being assessed, but the site may be eligible for the state-funded clean up program, relieving the City of any financial exposure. Because of the uncertainty of this event, no accrual has been recorded. Ash Sites

The City has identified four sites that were used for incinerator ash waste. The common practice during the 1950s and 1960s was to incinerate garbage and then mix the residual ash waste with other soil and use it as fill dirt. The City and the USEPA signed an agreement in 1999 to develop a plan to remediate the four sites. In order to make the sites and surrounding areas safe from a variety of residual pollutants, the City has proposed to the EPA a plan to clean up the areas by removing the top two feet of soil, placing a barrier, and then replacing the topsoil with untainted dirt. The project is estimated to take several years to complete once started and a cost estimate of $100.2 million has been accrued based on the City’s estimate used in its five year capital project plan. Approximately $20 million has been appropriated for FY2011. Other Sites FDEP had identified four sites of potential liability the City is responsible for. These sites are: Burke St. Lime Pitts, Doe Boy Dump Site, Gold Merit/Pope Plan, and Southside Incinerator Site. These project, which is estimated to take several years to complete once started, has an estimated cost of $36.8 million, which has been accrued by the City and included in the City’s five year capital projects plan. Various other remediation sites exist within the City and $13.7 million has been accrued for their estimated liability based on their inclusion in the City’s five year capital projects plan.

-130-



D. Pollution Remediation: (continued) The liability for Picketville Waste Dump Site at September 30, 2010, of $0.6 million is based on the most recent estimate by the Federal Government of the City's allocated share of the clean-up and long term care cost of the site under a Participation Agreement and Consent Decree with the USEPA. The City was identified as a responsible party, sharing 65% of the total clean-up costs

E. Shipyards Project: In previous fiscal years, the City provided an economic development grant to a developer related to a project titled “Shipyards”, totaling approximately $36.5 million, funded by tax exempt bond proceeds (City of Jacksonville, Florida Excise Tax Revenue Bonds, Series 2001B). The developer did not complete the improvements anticipated in the public offering. The City reached agreement with a replacement developer to provide the anticipated public improvements with some modifications, and soon thereafter the replacement developer commenced work. In April 2009, the City deemed the replacement developer in default under the terms of replacement development agreement and in June 2009 the developer filed for bankruptcy protection. The City pursued a foreclosure action and subsequent to the fiscal year end successfully obtained title to the entire property. In a previous fiscal year the City elected to notify the Internal Revenue Service of this matter and entered into voluntary negotiations intended to preserve the tax exempt status of interest on the bonds. At that time the City estimated an eventual settlement could be as much as $2.5 million and accrued that amount in the entity-wide financial statements as due to independent agencies and other governments. A final settlement was reached with the Internal Revenue Service in December, 2010 which preserved the tax exempt status of interest on the bonds while requiring no payment from the City. As of September 30, 2010 the City recognized a reduction to current period expenditures of $2.5 million as a result of the elimination of the liability previously recorded on the city-wide statements.

F. Garage Development Agreement: The City entered into agreements for a private developer to construct and operate three parking garages. Two of the garages are to support the sports complex and the other is to support a new courthouse site. The current agreement provides an operating subsidy to support both debt service and operating deficits of approximately $3 million per year associated therewith and has options to buyout the current business arrangement, refinance the related non-city debt and assume operational control thereof.

-131-


15. LITIGATION, CONTINGENCIES, AND COMMITMENTS (continued) G. Other Litigation: (continued)

The City is involved in a state law claim for negligence involving a police accidental shooting. Maximum potential liability exposure is $200,000. The City is involved in state law claims for negligence involving motor vehicle accidents. Maximum potential liability exposure is $500,000. The City is involved in a federal court litigation claim alleging violation of the American with Disabilities Act relating to City pension administration. Neither the financial liability nor the method of its calculation is determinable at the time. The City is involved in a state law battery claim alleging excessive force by arresting officers. Maximum potential liability exposure is $100,000. The City and JEA have been named as parties in a federal court litigation claim regarding breach of contract and statutory Prompt Payment claims relative to a road reconstruction project. The parties are considering and preparing for mediation. The plaintiff is seeking damages of $7 million, but a potential loss cannot be estimated at this time. The City is involved in a matter where the plaintiff is seeking reimbursement of $3.2 million for attorney fees from previous litigation. Currently the parties have agreed on a stay of further litigation until the Court of Appeals issues a decision on a related issue. A potential loss estimate cannot be made at this time. The City is involved in federal civil rights and wrongful death claims. The plaintiffs are seeking a large sum of damages. A potential loss estimate cannot be made at this time. The City is involved in a case filed in state court by property owners for violation of civil rights, negligence, and inverse condemnation for the City’s emergency demolition of property. Maximum potential liability is the value of the plaintiff’s property plus attorney fees. A potential loss estimate cannot be made at this time. The City is involved in state law claims for negligence in connection with accidents involving alleged defective sidewalks. Maximum potential liability exposure is $300,000

Since September 30, 2010, the City settled several legal matters including: state law claims for

negligence and other threatened state law claims. The City does not consider the settlement amounts to be material.

In accordance with FAS 5, no accrual has been made in the accompanying financial statements for these cases because relevant criteria have not been met. Payments, if any, will be funded by general revenue sources and earnings.

-132-



H. Construction Commitments: At September 30, 2010, the City had major construction contracts for the following projects:

Economic Development ProjectsCommercial Development 500,000$ Edward Waters College 550,000 NW Jacksonville Economic Development 879,298 Pinnacle Project 800,000 Shipyards Project 3,122,399 UF Land Acquisition and Renovation 3,282,330

Fire and Rescue ProjectsFire Station # 40 1,887,266

Improvement ProjectsSouthbank-Friendship Fountain 2,405,368 Bob Hayes/Northwest Community Center 1,641,551 Downtown Traffic Improvement 717,144

Public Works ProjectsEd Ball Building 813,569 Courthouse Projects 162,458,315

Public Works/Banking Fund Improvement Projects 1,368,860 Public Works Road Projects 32,671,017 Countywide Resurfacing 1,936,635 Drainage Rehab Projects 5,674,476 Septic Tank Remediation 19,707,773 Jacksonville Ash Site 5,779,505 Lime Site 535,143 Radio System Replacement 7,784,224

254,514,873$


-133-



I. Encumbrance Commitments: At September 30, 2010, the City had encumbrance commitments in the Governmental Funds as follows:

ENCUMBRANCES: (in thousands)MAJOR FUNDSGeneral Fund 11,189$ General Projects 54,403 Total Major Funds 65,592

NON-MAJOR FUNDSConcurrency Management 3,417 Air Pollution Control and Monitoring 1 Tourism Development 837 Clerk of the Court 37 Transportation Fund 625 Budgeted General Government 5,010 Public Safety 5 Emergency 9-1-1 270 Tax Increment Districts 760 Jacksonville Children's Commission 3,363 American Recovery & Reinvestment Act 2,101 Community Development Block Grant 14,280 Maintenance, Parks and Recreation 102 Other Federal, State and Local Grants 9,151 Housing and Neighborhoods 281 State Housing Initiative Partnership 1,073 Non Budgeted General Government 213 *Better Jacksonville Plan Construction Project 62,220 Bond Projects 17,836 Grant Projects 2,267 River City Renaissance Project 957 Total Non-Major Funds 124,806

TOTAL ENCUMBRANCES 190,398$

*The Better Jacksonville Plan Construction Project Fund accounts for funds associated with the $2.25 billion improvement plan. Council appropriated funds for the plan in its entirety at the inception, while funding sources including dedicated sales tax and debt issues are secured as needed. Multi-year contracts are encumbered and funding sources are obtained as construction occurs.

-134-


16. SUBSEQUENT EVENTS

A. JEA JEA issued bonds for infusion of new money and to refund existing debt purposes. Long-term debt issuances include: Electric System Revenue Bonds Series Three 2010D for $184,385,000 (refunding and swap termination fee funding) and Series Three 2010E for $34,255,000 (new money source), Electric System Subordinated Revenue Bonds 2010 Series C for $15,925,000 (refunding), Series D $45,575,000 and Series E $13,765,000 (new money purposes), Water and Sewer System Bonds 2010 Series F and G for $49,000,000 (new money purpose), Water and Sewer Systems Bonds 2010 Series E for $60,990,000 (refunding), Water and Sewer System Subordinated Revenue Bonds 2010 Series B for $12,770,000 (refunding). JEA also redeemed $7,925,000 of its Variable Rate Water and Sewer System Subordinated Revenue Bonds with available cash. JEA also had short-term borrowing including a $34,196,000 draw on a line of credit in connection with the refunding of debt (associated with long-term debt refunding discussed above). This borrowing is intended to be replaced with permanent financing in 2011. An additional refunding draw of $3,785,000 was made, which is scheduled to mature in 2011.

B. JPA JPA executed an $18.9 million loan agreement and tax-exempt fixed rate note for purposes of refunding Series 2000 bonds and funding a required note reserve.


-135-


17. MAJOR DISCRETELY PRESENTED COMPONENT UNITS - ADDITIONAL DISCLOSURE

During fiscal year 2010, the City had financial transactions with its discretely presented component units classified as follows for financial reporting purposes: A. JEA

Contribution - On October 1, 1968, the City turned its electrical department over to the newly created JEA. Additionally, on June 1, 1997, the JEA assumed the operation and all related assets and liabilities of the water and sewer system from the City. The JEA is required by the City Charter to contribute annually to the General Fund of the City an amount not to exceed 5.513 mills per kilowatt per hour sold and at a rate of 2.149 mills per cubic feet of water sold. For the fiscal year ended September 30, 2010 these contributions total $99,187,528. Such contributions to the City’s General Fund are for the use of the public right-of-way in connection with its electric distribution system and its water sewer distribution and collection system and are based on calculations contained within section 21.07 of the City Charter. Additional Agreements - JEA utilizes various services provided by departments of the City, including insurance, legal and motor pool. JEA is billed on a proportionate cost basis with other user departments and agencies. Related-party transactions with the City for fiscal year 2010 total (in thousands) $36,060 in revenues for services rendered and $4,778 in expenses for services received. Franchise Fees - Effective April 1, 2008, the City enacted a 3% franchise fee from designated revenues of the Electric and Water and Sewer Utility systems. The ordinance authorizes JEA to pass through these fees to its electric and water and sewer funds. For the year ended September 30, 2010, JEA recorded $30,766,000 and $7,789,000 in its electric and water and sewer funds, which are included in JEA operating revenues and expenses.


-136-


17. MAJOR DISCRETELY PRESENTED COMPONENT UNITS - ADDITIONAL

DISCLOSURE (continued) B. Jacksonville Transportation Authority (JTA) :

Local Option One-Half Cent Sales Tax - On August 11, 1989, Jacksonville citizens voted for the removal of all tolls from county/city bridges and certain roads and replaced the revenue with a local option one-half cent sales tax that provides a permanent funding source for the construction and maintenance of the City’s roads and bridges; the operation and maintenance of the bus system and the refinancing of existing bonds issued for the construction of such bridges and roads. All collections from the one-half cent sales tax are statutorily required to be remitted to the JTA. Accordingly, the City remitted all collections from the one-half cent sales tax to the JTA in the amount of $62.9 million in fiscal year 2010. Such collection and payment by the City of this local option one-half cent sales tax is recorded in the Transportation Special Revenue fund as revenue and a transportation expenditure in the equal amount. The JTA reports the $63.6 million transfer from the City as sales tax revenue. . In fiscal year 2000, the City and the JTA entered into an inter-local agreement for the purpose of jointly exercising the separate powers of each to the maximum extent allowable by the law in the development, scheduling, financing, planning, permitting, design, construction, and implementation of a $750 million Road, Bridge and Drainage Capital Improvement Work Program. The term of the agreement commenced on October 1, 2000 and continues in effect until all of the bonds have been duly paid in full or defeased in accordance with their terms. The City and JTA agreed to pledge the sales tax and the constitutional gas tax for the payment of bonds issued to implement the program. Monies available above debt service would be collected in a Pay-As-You-Go fund to assist with the payment of program expenditures. The City is making available the Local Option Gas Tax for the operation of the JTA’s Mass Transit Division.

C. Jacksonville Port Authority (JPA):

Interlocal Agreement - In connection with a major port and marine facilities capital improvement project (the ”Project”), the City and the JPA entered into an Interlocal Agreement upon the issuance of $43,605,140 Excise Taxes Revenue Bonds, Series 1993 (the “1993 Bonds”). Subsequent to this transaction, the parties entered into an Amended and Restated Interlocal Agreement in conjunction with the issuance of $57,150,000 Excise Taxes Revenue Bonds, Series 1996B (the “1996B Bonds”). The 1996B Bonds were refunded by the Excise Taxes Revenue Refunding Bonds, Series 2001A (the “2001A Bonds”). The 1993 Bonds were partially refunded by the Excise Taxes Revenue Refunding and Improvement Bonds, Series 2003C (the “2003C Bonds, and together with the 1993 Bonds and 2001A Bonds, the “Bonds”). Under the Amended and Restated Interlocal Agreement, the City agreed to issue the Bonds to finance the Project, and the JPA, in consideration therefore, agreed to reimburse the City for debt service payments on the Bonds from certain revenues allocated to the JPA. Any insufficiency in the extent of such revenues allocated to the JPA under the Amended and Restated Interlocal Agreement or any amendments to the Amended and Restated Interlocal Agreement does not affect in any manner any obligation of the City pursuant to the terms of the Bonds.

-137-


17. MAJOR DISCRETELY PRESENTED COMPONENT UNITS - ADDITIONAL

DISCLOSURE (continued) C. Jacksonville Port Authority (JPA): (continued)

The amended and restated Interlocal Agreement is not for the benefit of the holders of the Bonds and the JPA has no obligation under that Amended and Restated Interlocal Agreement to any third party bondholder. The revenues allocated to the JPA are not pledged as security for the Bonds. The Amended and Restated Interlocal Agreement provides for the allocation of three sources of revenue (collectively referred to as the “Pledged Revenues”) by the City to the JPA. The first source of revenue relates to the allocation of half of the increased revenues in the Telecommunications Tax, which is 85% of the Communication Services Tax (the “Authority Allocation No. 1”). The second source of revenue relates to the amount calculated by multiplying one quarter (.25) mills by the gross kilowatt hours (as defined in Article 21 of the City Charter) sold by JEA during the twelve month period ending May 31 of the prior fiscal year (the “Authority Allocation No. 2”). The third source of revenues relates to the $800,000 annual contribution remitted by the City to the JPA as described in Section 5(a) of the JPA act. Such Pledged Revenues are to be applied by the City to the payment of debt service on the Bonds for such fiscal year prior to being paid to the JPA. For the fiscal year ended September 30, 2010, the amount of Pledged Revenues in excess of the debt service requirements of the Bonds was $8.09 million with a total of $8.16 million being distributed to JPA. In previous years, the City expended $43.1 million on the Project from proceeds of the 1993 Bonds for the benefit of the JPA under the Amended and Restated Interlocal Agreement, which completed the 1993 Bond Program. In previous years, the City expended $64 million on the Project from proceeds of the 1996B Bonds for the benefit of the JPA under the Interlocal Agreement. The City accounted for these expenditures in the Capital Projects Funds. The City does not capitalize these capital outlay expenditures.

18. NET ASSETS:

The government –wide and business-type Fund Financial Statements utilizes a net assets presentation. Net assets are categorized as invested in capital assets, net of related debt, restricted, and unrestricted. Invested in Capital Assets, Net of Related Debt - is intended to reflect the portion of net assets which are associated with non-liquid, capital assets less outstanding capital asset related debt. The net related debt is the debt less the outstanding liquid assets and any associated unamortized cost. Restricted Net Assets – are liquid assets which have third-party (statutory, bond covenant or granting agency) limitations on their use. The City would typically use restricted assets first, as appropriate opportunities arise, but reserves the right to selectively defer the use there of to a future project or replacement equipment acquisition.

-138-


18. NET ASSETS: (continued)

Unrestricted Net Assets – typically represents unrestricted liquid assets. While City management may have categorized and segmented portions for various purposes, the City Council has authority to revisit or alter these managerial decisions. While the Unrestricted Net Assets balance is a single number in accordance with GASB Statement 34, the impact of non-asset debt will appear to reduce the year-end discretionary balance available to the government. However, in the City’s case, given that a portion of these non-asset bonds/loans reported in the Governmental Activities column have a dedicated revenue source (to amortize the debt over time) the year-end available portion of the Net Assets to the city is greater than is apparent. The following schedule illustrates these differences (000s): Governmental Unrestricted Net Assets (per statement – page 24) $ (207,729)

Impact of Better Jacksonville Plan’s (BJP) bond financed capital expenditures incurred by component units and other entities. 251,163

Economic Incentives to be repaid by TIF revenue and/or Developer 37,640

Governmental - Unrestricted Net Assets (adjusted for dedicated revenue funded portions) $ 81,074

Because the BJP program has dedicated sales tax revenue sources which will be used to repay the related debt service and either the CRA’s tax increment financing (TIF) revenue or the Developer repayments are anticipated to address the related debt service principal and all or a portion of the interest, the Government Unrestricted Net Assets (adjusted for dedicate revenue funded portions of non-assets debt) more truly reflect the General Government’s available (although partially tentatively targeted) portion of net assets.

-139-


19. FUND BALANCE DISCLOSURE: In accordance with Governmental Accounting Standards Board Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows: Nonspendable - includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual requirements. Spendable Fund Balance Restricted – includes fund balance amounts that are constrained for specific purposes which

are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation.

Committed – includes fund balance amounts that are constrained for specific purposes that

are internally imposed by the government through formal action of the highest level of decision making authority. The City’s original budget legislation begins with the Budget Office combining historical data, assessment of needs for the upcoming year and the Mayor’s platform to review, and/or make changes to each department’s budget. In June, a Budgetary Committee will meet again with each department for final review and approval of preliminary a budget. The budget is then formally presented to City Council the first Council Meeting in July for their review, revisions and final approval by September 30th, at which time it becomes law. All subsequent budget requests made during the year, after Council’s approval, must be presented on a Budget Transfers (BT) and again approval by Council. City Council may also amend the budget outside of the BT process.

Assigned – includes spendable fund balance amounts that are intended to be used for specific

purposes that are neither considered restricted or committed. Fund Balance may be assigned through the following: 1) The Director of Finance is authorized by City Council to assign amounts for a specific purpose. (2) The City Council has authorized the Director of Finance, in coordination with the Council Auditor, to recapture excess fund balance that isn’t restricted or committed and transfer the excess to the General Fund – General Service District. Excess fund balance that is not recaptured is classified as assigned by the Director of Finance to be used for the purpose of the subfund.

Unassigned - includes residual positive fund balance within the General Fund which has not

been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes.

-140-


19. FUND BALANCE DISCLOSURE: (continued) The City uses restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents/contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made, with the exception of the emergency reserve established by the City Council. Under normal circumstances, the City would first elect to utilize the Operating Reserve (Unassigned fund balance in the General Fund) before considering use of its Emergency Reserve. The City Council established an emergency reserve policy and fund beginning with the fiscal year 2006 budget and amended with Ordinance 2010-852-E, which added “The Emergency Reserve can be used to address unanticipated non-reimbursed expenditures arising out of a hurricane, tornado, other major weather related events, and/or other massive infrastructure failures or other disasters, whether man made or caused by nature.” The emergency reserve is contained as a separate subfund within the General Fund and is included in each annual budget. The emergency reserve shall not be used except as initiated by the Mayor through written communication to the City Council, explaining the emergency, and requires approval by two-thirds vote of all City Council members. The emergency reserve will be classified as committed fund balance. The City does not have a formal minimum fund balance policy. However, the City’s Ordinance code addresses various targeted reserve positions and the Administration calculates targets and actuals to report the results annually to City Council. A schedule of City fund balances is provided in the following pages.


-141-

CITY OF JACKSONVILLE, FLORIDANOTES TO THE FINANCIAL STATEMENTSSEPTEMBER 30, 2010

19. FUND BALANCE DISCLOSUREA. FUND BALANCE CLASSIFICATION

SPECIALBONDED DEBT-


GENERAL PLAN BONDED DEBT- GENERALFUND OBLIGATIONS OBLIGATIONS PROJECTS

FUND BALANCES:

Non Spendable: Inventories 6,604$ -$ -$ -$ Other - - - -

Spendable: Restricted for:

Debt Service Reserved by Debt Covenants - 99,569 16,505 - Waterway Projects - - - - Water-Sewer Combination - - - 5,759 Shipyard Project - - - - Park Projects - - - 4,217 Physical Environment - - - 20,298 Conservation and Resource Management - - - - Transportation Projects - - - 6,660

- - - - - - - - - - - -

Regional Stormwater Facilities - - - - Drainage System Projects - - - 5,778

- - - - - - - -

Public Safety - - - 11,778 - - - -

- - - - Other - - - 6,324

Committed to: City Council Emergency Use 44,920 - - - Drainage Projects - - - 5,035 Water-Sewer Combination - - - 5,018 Park Projects 2,004 - - 3,675 Planning Projects 3,311 - - - Physical Environment - - - 17,689 Conservation and Resource Management - - - - Transportation Projects 578 - - 5,804 Emergency and Disaster Relief - - - - Court Projects - - - - Public Safety 6,673 - - 10,264 Industry Development - - - - Other 1,435 - - 5,512

Assigned to:Debt Service - - 2,977 - Transportation Projects 114 - - - Parks Projects 396 - - - Planning Projects 654 - - - Public Safety 1,318 - - - Other 284 - - -

Unassigned: Unassigned 41,774 - - -

Total Fund Balances 110,065$ 99,569$ 19,482$ 113,811$

Other Infrastructure and DevelopmentOther Facilities Improvement

MAJOR FUNDS

Building

Other GrantsHuman Services

Housing and Urban Development

Emergency and Disaster Relief

-142-

AIR POLLUTION CLERK BUDGETEDCONCURRENCY CONTROL AND TOURISM OF THE TRANSPORTATION GENERAL PUBLIC EMERGENCYMANAGEMENT MONITORING DEVELOPMENT COURT FUND GOVERNMENT SAFETY 9-1-1

-$ -$ -$ -$ -$ -$ -$ -$ - - - - - 3 - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,120 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1,712 - - - - - - - - - - - - - - - - - - - - 19,882 - -

51,005 - - - 31,464 - - - - - - - - - 25 6,854 - - - 306 - 927 - - - - - - - 1,216 405 - - - 1,830 - - - - -

61 - 1,158 - - 928 - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - -

52,778$ 1,120$ 2,988$ 306$ 31,464$ 22,956$ 430$ 6,854$

(continued)

NONMAJOR SPECIAL REVENUE FUNDS

-143-

CITY OF JACKSONVILLE, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010

19. FUND BALANCE DISCLOSURE (continued)A. FUND BALANCE CLASSIFICATION (continued)

AMERICAN COMMUNITYJACKSONVILLE RECOVERY & DEVELOPMENT JOB TRAINING

TAX INCREMENT CHILDREN'S REINVESTMENT BLOCK PARTNERSHIPDISTRICTS COMMISSION ACT GRANT ACT GRANT

FUND BALANCES:

Non Spendable: Inventories -$ -$ -$ -$ -$ Other - - - - -


Debt Service Reserved by Debt Covenants - - - - - Waterway Projects - - - - - Water-Sewer Combination - - - - - Shipyard Project - - - - - Park Projects - - - - - Physical Environment - - - - - Conservation and Resource Management - - - - - Transportation Projects - - - - -

- - - - - - - - - - - 6,574 - - 676

Regional Stormwater Facilities - - - - - Drainage System Projects - - - - -

- - - 12,112 - - - - - -

Public Safety - - 4 - - - - - - -

- - Other - - - - -

Committed to: City Council Emergency Use - - - - - Drainage Projects - - - - - Water-Sewer Combination - - - - - Park Projects - - - - - Planning Projects - - - - - Physical Environment - - - - - Conservation and Resource Management - - - - - Transportation Projects - - - - - Emergency and Disaster Relief - - - - - Court Projects - - - - - Public Safety - - - - - Industry Development 965 - - - - Other - - - - -

Assigned to:Debt Service - - - - - Transportation Projects - - - - - Parks Projects - - - - - Planning Projects - - - - - Public Safety - - - - - Other - - - - -

Unassigned: Unassigned - - - - -

Total Fund Balances 965$ 6,574$ 4$ 12,112$ 676$

Building

Other Infrastructure and Development


Other Facilities Improvement


Housing and Urban Development

-144-

MAINTENANCE METROPOLITAN OTHER FEDERAL, BETTER STATE HOUSING NON-BUDGETEDPARKS AND PLANNING STATE AND JACKSONVILLE HOUSING AND INITIATIVE GENERAL

RECREATION ORGANIZATION LOCAL GRANTS PLAN TRUST NEIGHBORHOODS PARTNERSHIP GOVERNMENT

-$ -$ -$ -$ -$ -$ -$ 1 - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 125 7,074 - - - - - - - - - - - - - - - - - - - - 5,906 - - - - - - - - - - - - - - - - - - - - - - 27,974 16,535 - - - - - - - - - - 2,707 - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - 994 - - - - - - -

2,772 - - - - - 5,613 - - - - - - - - - - - - - - - - - - - - - - - - 25,491 - - - - - - - - - - - - - - - - - - - - - - - 5,053 - - - - - - - - - - - - - 3,196

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

-

- - - - - - -

2,773$ 125$ 15,687$ 25,491$ 27,974$ 16,535$ 14,856$

(continued)

NONMAJORSPECIAL REVENUE FUNDS

-145-

CITY OF JACKSONVILLE, FLORIDANOTES TO THE FINANCIAL STATEMENTSSEPTEMBER 30, 2010

19. FUND BALANCE DISCLOSURE (continued)A. FUND BALANCE CLASSIFICATION (continued)

OTHER BETTERGENERAL NON-BONDED JACKSONVILLE RIVER CITY

BONDED DEBT DEBT PLAN BOND GRANT RENAISSANCEOBLIGATIONS OBLIGATIONS CONSTRUCTION PROJECTS PROJECTS PROJECT

FUND BALANCES:

Non Spendable: Inventories -$ -$ -$ -$ -$ -$ Other - - - - - -


Debt Service Reserved by Debt Covenants - - - - - - Waterway Projects - - - - - - Water-Sewer Combination - - - - - - Shipyard Project - - - 3,122 - - Park Projects - - - 17,108 8,264 294 Physical Environment - - - - - - Conservation and Resource Management - - - - - - Transportation Projects - - - 5,113 - 992

- - - - - - - - - - - - - - - - - -

Regional Stormwater Facilities - - - 8,828 - - Drainage System Projects - - - 8,299 - -

- - - - - - - - - 4,704 - -

Public Safety - - - - - - - - - 11,969 - -

- - - - - - Other - - 11 - 1,490 1,257

Committed to: City Council Emergency Use - - - - - - Drainage Projects - - - - - - Water-Sewer Combination - - - - - - Park Projects - - - - - - Planning Projects - - - - - - Physical Environment - - - - - - Conservation and Resource Management - - - - - - Transportation Projects - - - - - - Emergency and Disaster Relief - - - - - - Court Projects - - - - - - Public Safety - - - - - - Industry Development - - - - - - Other - - - - - -

Assigned to:Debt Service - 238 - - - - Transportation Projects - - - - - - Parks Projects - - - - - - Planning Projects - - - - - - Public Safety - - - - - - Other - - - - - -

Unassigned: Unassigned - - - - - -

Total Fund Balances -$ 238$ 11$ 59,143$ 9,754$ 2,543$


Other Infrastructure and DevelopmentOther Facilities Improvement

NONMAJOR


NONMAJORDEBT SERVICE FUNDS

Housing and Urban DevelopmentBuilding


-146-

NONMAJORPERMANENT FUND

CEMETERYMAINTENANCE

FUNDS 2010 2009

-$ 6,604$ 6,259$ 123 127 123

- 116,074 102,731 - - 1,266 - 5,759 - - 3,122 3,122 - 29,883 7,180 - 20,298 - - 1,120 1,282 - 19,964 13,860 - - 4,583 - - 8,019 - 13,156 10,524 - 8,828 9,022 - 14,077 2,213 - 56,621 51,173 - 4,704 1,832 - 14,489 461 - 11,969 1,826 - - 954 - 9,082 1,368

- 44,920 44,112 - 6,029 2,841 - 5,018 9,522 - 14,064 11,106 - 5,023 9,971 - 17,689 8,924 - 19,882 20,913 - 114,342 132,045 - 6,879 6,349 - 1,233 10,448 - 23,611 16,989 - 2,795 4,269

110 12,400 10,014

- 3,215 5,057 - 114 142 - 396 273 - 654 1,124 - 1,318 1,442 - 284 3,840

- 41,774 3,698

233$ 657,517$ 530,877$

ALL FUNDS

(continued)

TOTAL

-147-


-148-

REQUIRED SUPPLEMENTAL INFORMATION

-149-

CITY OF JACKSONVILLE, FLORIDAGENERAL FUND AND MAJOR SPECIAL REVENUE FUNDSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES INFUND BALANCES - BUDGET AND ACTUAL (Budgetary Basis) (in thousands)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

GENERAL FUND

VARIANCE WITH FINAL BUDGET- BUDGETARY POSITIVE ORIGINAL FINAL ACTUAL ENCUMBRANCES ACTUAL (NEGATIVE)

REVENUE: Property taxes............................................................................. $ 470,085 $ 470,085 $ 476,532 -$ $ 476,532 $ 6,447Utility service taxes.................................................................... 129,457 129,457 126,878 - 126,878 (2,579) Sales and use taxes.................................................................... 1,131 1,131 1,058 - 1,058 (73) Franchise Fees............................................................................ 39,444 39,444 39,842 - 39,842 398 Licenses and permits.................................................................. 8,068 8,068 8,052 - 8,052 (16)Intergovernmental...................................................................... 129,656 129,656 119,296 - 119,296 (10,360)Charges for services................................................................... 73,483 73,483 71,531 - 71,531 (1,952)Fines and forfeitures.................................................................. 4,151 4,151 2,997 - 2,997 (1,154)JEA Charter................................................................................ 99,188 99,188 99,188 - 99,188 - Interest........................................................................................ 12,972 12,972 13,952 - 13,952 980Other.......................................................................................... 15,222 15,228 17,152 - 17,152 1,924

Total Revenue.................................................................................... 982,857 982,863 976,478 - 976,478 (6,385)

EXPENDITURES AND ENCUMBRANCES:

Central Operations..................................................................... 22,307 22,160 19,827 816 20,643 1,517 City Council............................................................................... 9,385 9,685 8,683 249 8,932 753 Clerk of the Courts..................................................................... 3,590 3,640 3,919 - 3,919 (279) Courts......................................................................................... 1,573 1,579 1,290 4 1,294 285 Environmental and Compliance................................................. 19,349 20,672 19,121 417 19,538 1,134 Finance....................................................................................... 8,721 8,718 8,369 31 8,400 318 Fire/Rescue................................................................................ 166,839 166,893 163,997 1,203 165,200 1,693 General Counsel......................................................................... 327 722 720 - 720 2 Health Administrator................................................................. 733 733 281 - 281 452 Housing and Neighborhoods...................................................... 689 689 689 - 689 - Jacksonville Children's Commission......................................... 7,144 7,144 5,974 307 6,281 863 Jacksonville Human Rights Commission.................................. 1,311 1,311 1,231 12 1,243 68 Mayor......................................................................................... 2,079 2,090 2,085 - 2,085 5 Mayor's Boards and Commissions............................................. 426 461 455 1 456 5 Medical Examiner...................................................................... 3,178 3,162 2,850 32 2,882 280 Property Appraiser..................................................................... 9,457 9,707 9,274 12 9,286 421 Public Defender......................................................................... 944 945 944 - 944 1 Planning and Development........................................................ 8,617 8,742 7,902 527 8,429 313 Pension Funds............................................................................ - - - - - - Public Libraries.......................................................................... 42,316 42,316 41,336 274 41,610 706 Public Works.............................................................................. 83,243 83,208 79,019 1,458 80,477 2,731 Recreation and Community Services 54,090 51,479 48,474 1,771 50,245 1,234 State Attorney............................................................................ 441 441 359 1 360 81 Supervisor of Elections.............................................................. 9,088 9,069 5,995 217 6,212 2,857 Office of the Sheriff................................................................... 360,384 359,674 349,409 3,592 353,001 6,673 Tax Collector............................................................................. 17,996 17,996 14,761 220 14,981 3,015 Federal Program Reserve........................................................... 2,081 1,039 - - - 1,039 Contribution to Shands-Jacksonville......................................... 23,776 23,776 23,776 - 23,776 - Cash Carryover Reserves........................................................... 41,602 41,602 - - - 41,602 Collective Bargaining Contingency................................................ (20,655) (20,655) - - - (20,655) Jacksonville Misc. Citywide Activities...................................... 48,433 50,832 49,312 45 49,357 1,475

Total Expenditures............................................................................ 929,464 929,830 870,052 11,189 881,241 48,589 EXCESS OF REVENUE OVER (UNDER)

EXPENDITURES.................................................................... 53,393 53,033 106,426 (11,189) 95,237 42,204

OTHER FINANCING SOURCES (USES): Long Term Debt Issued............................................................. 3,829 6,944 3,556 - 3,556 (3,388) Operating transfers in................................................................. 7,750 16,747 16,747 - 16,747 - Operating transfers out............................................................... (129,397) (134,393) (126,335) - (126,335) 8,058

Total Other Financing Sources (Uses).............................................. (117,818) (110,702) (106,032) - (106,032) 4,670

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (64,425) (57,669) 394 (11,189) (10,795) 46,874

FUND BALANCES - BEGINNING................................................ 110,181 110,181 110,181 - 110,181 - Change in reserve for inventory of supplies (510) (510) (510)

FUND BALANCES - ENDING...................................................... 45,756 52,512 110,065 (11,189) 98,876 46,364

-150-

CITY OF JACKSONVILLE, FLORIDA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

1. BUDGETARY DATA

The City uses the following procedures in establishing the budgetary data reflected in the financial statements.

A. The City adopts its budget in accordance with Chapters 129 and 200, Florida Statutes,

the City Charter and Municipal Ordinance Code.

(1) The Mayor's Proposed Budget is presented to the City Council on the second Tuesday in July; the budget ordinance, millage levy ordinance and related resolutions are introduced.

(2) During the first Council meeting in September, public hearings are held on both

the budget and the millage rate. Following the public hearings, the Council adopts a tentative budget and tentative millage rate. A final budget and millage is adopted by full Council, and is effective on October 1.

The City presents a Budgetary Comparison Schedule as Required Supplementary Information for the General Fund and each major special revenue fund with a legally adopted budget. For the Fiscal Year 2010, no special revenue funds met the criteria to be reported as a major fund. The City has opted to make this presentation in the format and classifications of the budget document. These schedules report actual expenditures using generally accepted accounting principles as well as expenditures on the budgetary basis, which include amounts encumbered for future spending.

B. The City adopts annual budgets for the General Fund, certain Special Revenue Funds,

and Proprietary Funds. The City reports Budgetary Comparisons for its General Fund and Major Special Revenue Funds in the Required Supplementary Information section of the report. None of these funds had an excess of expenditures over appropriations for the year ended September 30, 2010. Proprietary Fund budgets are adopted for management control purposes. The City is not required to include Budgetary Comparisons for Proprietary Funds in this report. Project or program budgets, which may not coincide with the City's fiscal year, or which may exceed a single annual period, are adopted by separate ordinance for most Special Revenue Funds and Capital Project Funds. Budgets are not formally adopted for Debt Service Funds as internal spending controls are set by compliance with bond covenants. The Special Revenue Funds which are not annually budgeted include the following: Community Development Block Grant, Job Training Partnership Act Grant, Maintenance, Parks and Recreation, Metropolitan Planning Organization, Other Federal, State and Local Grants, Better Jacksonville Trust Fund, Housing and Neighborhoods, State Housing Initiative Partnership, Non-Budgeted General Government, Clerk of Court, and American Recovery & Reinvestment Act.

-151-

CITY OF JACKSONVILLE, FLORIDA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

1. BUDGETARY DATA (continued) C. Level of Budgetary Control - Expenditures may not exceed appropriations and are

controlled in the following manner:

(1) The budget is adopted by ordinance which sets the legal level of control at the fund level by department.

(2) The City adopted more stringent administrative policies that control expenditures

at the major category (Personal Services, Operating Expense, Capital Outlay, Debt Service) level within divisions within individual funds.

(3) The City, additionally, adopted a Municipal Ordinance Code Policy that provides

transfer authority to the mayor, without City Council approval, within an individual fund if the total transferred funds for a specific purpose, project or issue is under $750,000 during the fiscal year. These transfers are reported to the Finance Committee on a quarterly basis.

D. Supplemental Appropriations - The City Council may, through passage of an

ordinance, amend the budget in any manner permissible under state and local law, with one exception. Bond covenants, trust and agency agreements, and certain clauses of ordinances in effect may restrict certain budgetary items in terms of amount or use. In certain instances the City may supplement the appropriations in a fund due to unexpected high levels of receipts or under estimates of carry forward balances. Supplemental appropriations to the Fiscal Year 2010 Annual Budget Ordinance were made throughout the year, the effects of which were not material.

E. All appropriations in annually budgeted funds, except for amounts corresponding to outstanding encumbrances, lapse at year-end or at the close of the authorizing project/program, unless specifically carried forward by ordinance.

F. Formal budgetary integration is used as a management control device for all funds of

the City, except certain Debt Service Funds as explained in Note to RSI 1.C.

G. The Clerk of the Circuit Court’s general fund budget for county activities is approved annually by the City Council. As displayed in the preceding RSI schedule, the Clerk exceeded the approved budget by $279,000 and was not in compliance with the City’s adopted budget ordinance.

H. The Clerk of the Circuit Court special revenue fund budget is not approved by the

City. The Court subfund is submitted and approved by the State and is based on the State’s July 1st to June 30th fiscal year. The Court’s Public Records Modernization Trust subfund and Child Support Enforcement Trust subfund are not budgeted. This special revenue fund does not meet the annually budgeted criteria.

I. The City’s Annual Financial Plan, or published budget document, may be obtained

from the City’s Budget Office located at 117 West Duval Street, Suite 325, Jacksonville, Florida 32202.

-152-

City of Jacksonville, FloridaRequired Supplemental InformationSchedule of Employer ContributionsCity of Jacksonville Retirement SystemSeptember 30, 2010(in thousands)

Plan Year Annual Alloted fromEnding Required City Cash Past Excess Total Employer Percentage

September 30 Contributions Contributions Contributions Contributions Contributed

Combined Plans

2001 12,235$ 125$ 12,110$ 12,235$ 100%2002 12,724 - 12,724 12,724 100%2003 19,003 8 18,995 19,003 100%2004 25,775 23,773 2,002 25,775 100%

General Employees Pension Plan

2005 27,724$ 14,607$ 13,117 27,724$ 100%2006 28,670 7,934 20,736 28,670 100%2007 29,297 29,581 - 29,581 101%2008 29,371 29,488 - 29,488 100%2009 29,491 29,530 - 29,530 100%2010 38,612 40,551 - 40,551 105%

Corrections Officers Plan

2005 3,233$ 1,787$ 1,446 3,233$ 100%2006 1,917 1,917 - 1,917 100%2007 1,830 2,482 - 2,482 136%2008 4,329 4,350 - 4,350 100%2009 5,268 5,101 146 5,247 100%2010 9,097 9,491 - 9,491 104%

Certain adjustments are made to the annual required contribution if the plan carries a net pension obligation(NPO) The net pension obligation (asset if a credit) is defined in GASB No. 27 as the cumulative difference at the date of adoption (or transition) between annual requirements and actual contributions plus the cumulative difference between the requirements and contributions after that date. For 2010, additional interest credits attributable to the timing of contribution payments resulted in a net pension credit (negative NPO) of $2,343 thousand for the plan as a whole represented by a net pension credit (negative NPO) of $2,095 thousandfor General Employees and $248 thousand for Corrections.

Note that the net pension asset is not the same as "past excess contributions," which stands for the difference, including interest, between the City's contributions for a plan year and that year's funding requirementdetermined as though the fund's assets did not include any contributions made in a prior year in excessof that year's requirement.

-153-

CITY OF JACKSONVILLE, FLORIDAREQUIRED SUPPLEMENTAL INFORMATIONSCHEDULE OF EMPLOYER CONTRIBUTIONSPOLICE AND FIRE RETIREMENT SYSTEMSEPTEMBER 30, 2010(in thousands)

Plan Year Annual City Allocated Premium Total Total

Ending Required Cash from Court Tax Employer Member PercentageSept., 30 Contributions Contributions CBSA Fines Refunds Contributions Contributions Contributed

2005 50,727 25,851 8,753 1,325 5,216 41,145 9,582 100%2006 53,263 34,712 2,106 1,412 5,388 43,618 9,646 100%2007 55,927 42,866 (4,358) 1,342 5,720 45,570 10,357 100%2008 65,389 47,145 443 1,219 5,931 54,738 10,651 100%2009 67,993 49,246 329 989 6,222 56,787 11,207 100%2010 99,018 81,171 (1,021) 1,026 6,322 87,497 11,521 100%

NOTES:


City Cash Contributions shown above do not include employer buyback contributions. Total Member Contributions shown above include DROP contributions, but do not include employee buyback contributions.

In all years shown, 100% of the ARC has been contributed thus producing a Net Pension Obligation of $0 for all years.

-154-

City of Jacksonville, FloridaRequired Supplemental InformationSchedule of Funding ProgressCity of Jacksonville Retirement SystemSeptember 30, 2010(in thousands)

Actuarial Actuarial Annual UAAL as a %Value of Accrued Liability Funded Covered of CoveredAssets (2) (AAL) (1) Unfunded AAL Ratio Payroll Payroll

Valuation Date (a) (b) (b-a) (a/b) ( c ) ((b-a)/c)

Combined Plans

9/30/2001 1,459,649$ 1,511,829$ 52,180$ 96.55% 234,684$ 22.2%9/30/2002 1,425,708 1,528,742 103,034 93.26% 243,446 42.3%9/30/2003 1,426,783 1,611,958 185,175 88.51% 237,373 78.0%9/30/2004 1,496,315 1,810,451 314,136 82.65% 236,540 132.8%

General Employees Pension Plan

9/30/2005 1,509,710$ 1,734,997$ 225,287$ 87.02% 226,819 99.3%9/30/2006 1,593,296 1,812,972 219,676 87.88% 237,108 92.6%9/30/2007 1,712,461 1,904,929 192,468 89.90% 248,887 77.3%9/30/2008 1,673,435 2,004,279 330,844 83.49% 262,345 126.1%9/30/2009 1,591,345 2,065,464 474,119 77.05% 276,257 171.6%9/30/2010 1,640,892 2,163,080 522,188 75.86% 322,531 161.9%

Corrections Officers Plan

9/30/2005 60,106$ 75,151$ 15,044$ 79.98% 26,256 57.3%9/30/2006 68,791 104,126 35,335 66.07% 27,702 127.6%9/30/2007 78,458 116,945 38,487 67.09% 27,083 142.1%9/30/2008 83,056 137,830 54,774 60.26% 26,334 208.0%9/30/2009 86,358 181,031 94,673 47.70% 27,661 342.3%9/30/2010 97,464 204,384 106,920 47.69% 32,329 330.7%

(1) Actuarial Assumptions provided in the notes to financial statements

(2) Net of the unassigned past-excess contributions separate account

-155-

CITY OF JACKSONVILLE, FLORIDAREQUIRED SUPPLEMENTAL INFORMATIONSCHEDULE OF FUNDING PROGRESSPOLICE AND FIRE RETIREMENT SYSTEMSEPTEMBER 30, 2010(in thousands)

ActuarialActuarial Accrued Annual UAAL Value of Liability Unfunded Funded Covered as a % of

Valuation Assets (AAL) (1) AAL Ratio Payroll Covered PayrollDate (a) (b) (b-a) (a/b) (c) ((b-a)/c)

09/30/05 765,180 1,314,424 549,244 58.21% 130,392 421.23%09/30/06 827,338 1,376,659 549,321 60.10% 134,694 407.83%

09/30/07 930,454 1,464,508 534,054 63.53% 143,006 373.45%09/30/08 894,903 1,692,975 798,071 52.86% 148,277 538.23%09/30/09 855,997 1,753,946 897,949 48.80% 155,558 577.24%09/30/10 861,243 (2) 1,840,753 979,510 46.79% 158,047 619.76%


( 2) This account was redefined by the Restated Agreement effective April 1, 2000. As of September 30, 2010, the value of the City Budget Stabilization Account was $339,295 and the Enhanced Benefit Account was $15,306,054. These amounts are not included in the Actuarial Value of Assets.

(1) Actuarial Assumptions provided in the notes to the financial statements.

-156-

CITY OF JACKSONVILLE, FLORIDAREQUIRED SUPPLEMENTAL INFORMATIONSCHEDULE OF FUNDING PROGRESSCITY OF JACKSONVILLE POST EMPLOYMENT BENEFITS OTHER THAN PENSION (OPEB)SEPTEMBER 30, 2010(in thousands)

Actuarial Actuarial Unfunded Annual UAAL asValuation Accrued Value AAL Percentage Covered Percentage

Date Liability (AIL) of Assets (UAAL) Funded Payroll of Payroll

9/30/2007 175,117$ $0 175,117$ 0.0% 370,069$ 47.3%

9/30/2009 136,879$ $0 136,879$ 0.0% 386,761$ 35.4%

9/30/2010 139,600$ $0 139,600$ 0.0% 393,800$ 35.5%

Actuarial Assumptions provided in the notes to financial statements. The City is not funding the AAL.

The decrease in Actuarial Accrued Liability (AAL) from fiscal years 2007 to 2009 and 2010 were due to the following: (a) A 4.5% discount rate was used in fiscal year 2009 and 2010 as compared to a 4.0% discount rate in fiscal year 2007. (b) Used marginally lower participation assumptions based on actual data provided by the City. (c) The other key assumption that changed was the treatment of retirees who are not eligible for Medicare. Based on the information provided by the City's health insurance carrier (Aetna), fiscal years 2009 and 2010 assumed that 10% of the current retirees would not be eligible for Medicare.

-157-


-158-

NON-MAJOR GOVERNMENTAL FUNDS: SPECIAL REVENUE FUNDS

Special Revenue Funds account for the proceeds of specific revenue sources (other than expendable trusts and major capital projects) that are legally restricted to expenditure for specific purposes as described below. The Concurrency Management Fund provides funding for maintenance and update of the Concurrency Management System which is the basis for ensuring compliance with the 2010 Comprehensive Plan. The Air Pollution Control and Monitoring Fund receives revenue from licenses and fees, and contributions from the federal government to monitor and control environmental problems related to the air quality in Jacksonville.

Tourism Development Fund collects revenues from tourist and convention development taxes to fund tourism programs sponsored by the Tourist Development Council through the City.

The Clerk of the Circuit Court Fund receives revenue collected on behalf of the state and City by the courts system for various judgments, fines, bonds, fees and licenses, and other miscellaneous amounts. The Fund includes Public Records Modernization activity which receives revenues from a service charge authorized by Florida Statute 28.24(15)(d) to be held in trust and used exclusively for equipment, personnel training, and technical assistance in modernizing the official public records system of the Clerk’s office. The Transportation Fund accounts for revenue from the City's six cent local option gas tax, the state-shared 5th and 6th cent gas tax, and the one-half cent local option sales tax used to fund major road and related capital infrastructure construction and maintenance and the City's mass transit and automated skyway express system operations.

The Budgeted General Government Fund accounts for numerous smaller accounts whose revenues are dedicated to a variety of specific purposes.

The Public Safety Fund funds specific public safety programs through user fees and intergovernmental revenue for emergency management planning and disaster medical services provided by the Office of the Sheriff and the City Department of Fire and Rescue.

The Emergency 9-1-1 Fund receives revenues from a fee added to the telephone bill of telephone customers that may be used for system operations and improvements.

The Tax Increment Districts Fund receives a distribution of ad valorem tax revenue levied and collected in the City's four tax increment districts used to promote future commercial business development that expands property tax base values in the City's core downtown areas and the northwest region.

-159-

The Jacksonville Children's Commission Fund receives City funds, and various grants, to serve as the community coalition for children. The autonomous board has the ongoing responsibility of improving the lives of Jacksonville's children by serving as the central focus for the evaluation, planning and distribution of funds for children's services that are consistent with City programs and goals.

The American Recovery & Reinvestment Act Fund accounts for resources received from the American Recovery Act (ARRA) of 2009. The funding supports the City’s efforts to address crime and public safety, energy efficiency and environmental quality, infrastructure and transportation improvements, and job creation and workforce development.

The Community Development Block Grant Fund receives monies from the federal government in the form of community development block grants made available to specific targeted areas of Jacksonville to assist in rehabilitation and revitalization in support of the area's future economic growth and stability.

The Job Training Partnership Act Grant Fund accounts for direct federal assistance to the Private Industry Council of Jacksonville in providing employment and training services to the economically disadvantaged and displaced citizens of Jacksonville through cooperative efforts with local private sector businesses.

The Maintenance, Parks and Recreation Fund receives revenues from user fees and charges from parks and recreation facilities that are dedicated to parks maintenance and improvements, and acquisition of new recreational facilities.

The Metropolitan Planning Organization Fund receives funds from the Federal Highway Department and the Federal Urban Mass Transportation Administration, and the Florida Department of Transportation for planning the future of Jacksonville's metropolitan area, principally in the area of transportation.

The Other Federal, State and Local Grants Fund records all other miscellaneous grants administered by the City from federal, state and local sources not specifically accounted for by other funds covering diverse programs such as: day care, adult homemaker, beach erosion, base conversion and redevelopment, economic capital development, aids treatment care, senior services and nutrition, crime prevention and drug abuse, teenage pregnancy and childhood development, foster grandparents, and waste tire disposal.

The Better Jacksonville Plan Trust Fund receives revenue from the half-cent infrastructure sales tax. All monies placed into this trust are appropriated for Debt Service requirements and contributions to the Better Jacksonville Capital Projects Fund. Housing and Neighborhoods was designated as the housing agency for Affordable Housing, State Housing Initiative Partnership funds, and all other matters related to housing, with the exception of those matters which fall within the responsibility of the Jacksonville Housing Authority.

-160-

The State Housing Initiative Partnership Fund accounts for revenue collected by the Clerk of the Circuit Court on certain property transactions in Duval county passed from the State earmarked for housing assistance and financial incentive programs to increase the availability of affordable housing in Jacksonville including down payment assistance, home owner repair and rehabilitation and acquisition of existing single family dwellings for home ownership. The Non-Budgeted General Government Fund accounts for numerous smaller funds whose revenues are dedicated to a variety of specific purposes. DEBT SERVICE FUNDS Debt Service Funds account for the accumulation of resources for, and the payment of, interest and principal on most general governmental obligations. Individual debt service funds are described below.

The General Bonded Debt Obligations Fund accounts for the accumulation of resources for, and the payment of, principal and interest on the Duval County Certificates of Indebtedness of 1972 General Obligation Bonds of the construction of the Police Administration Complex.

The Other Non-Bonded Debt Obligations Fund accounts for the accumulation of resources for, and the payment of, principal and interest on other non-bonded debt obligations.

CAPITAL PROJECTS FUNDS Capital Projects Funds account for financial resources segregated for the construction or acquisition of major capital facilities (other than those financed by proprietary funds and fiduciary funds). Descriptions of individual funds in this fund type follow. The Better Jacksonville Plan Construction Projects Fund receives revenues from the two local option sales tax programs and proceeds from the sale of bonded debt issued by the City to fund projects under the Better Jacksonville Plan.

The Bond Projects Fund receives proceeds from the sale of bonded debt issued by the City to fund major capital improvement projects.

The Grant Projects Fund accounts for monies received by the City under various federal, state and local grants restricted to expenditure of specific capital improvements funded under the grant program.

The River City Renaissance Project Fund accounts for proceeds of a comprehensive capital improvement initiative (the "River City Renaissance") for projects concerning the environment, children, health and social services, economic development, neighborhoods and downtown, parks and recreation, and the arts. PERMANENT FUND The Permanent Fund is used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that benefit the government or its citizenry. The City accounts for its Cemetery Maintenance Funds as a Permanent Fund.

-161-

CITY OF JACKSONVILLE, FLORIDACOMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDSSEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

SPECIAL REVENUE FUNDS

AIR POLLUTION CLERKCONCURRENCY CONTROL AND TOURISM OF THEMANAGEMENT MONITORING DEVELOPMENT COURT

ASSETS

Equity in cash and investments.................................................. $ 53,911 $ 1,045 $ 2,912 $ 1,674 Cash in escrow and with fiscal agents....................................... - - 100 1,421 Receivables (net, where applicable, of

allowances for uncollectibles):Accounts ......................................................................... - - - - Mortgages........................................................................ - - - - Others............................................................................... - - - -

Due from other funds................................................................. - - - - Due from independent agencies and other governments........... - 231 - - Prepaid Items............................................................................. - - - -

TOTAL ASSETS...................................................................... $ 53,911 $ 1,276 $ 3,012 $ 3,095


LIABILITIES:Accounts payable and accrued liabilities............................. $ 515 $ 156 $ 24 $ 789 Contracts payable................................................................. 256 - - - Due to other funds................................................................ - - - - Due to component units........................................................ - - - - Due to individuals................................................................ - - - - Matured interest payable...................................................... - - - - Deposits................................................................................ 362 - - 2,000 Advances from other funds.................................................. - - - - Unearned revenue................................................................. - - - -

TOTAL LIABILITIES............................................................ 1,133 156 24 2,789

FUND BALANCES:Non Spendable:

Non Spendable................................................................. - - - -

Spendable:Restricted......................................................................... - 1,120 - - Committed....................................................................... 52,778 - 2,988 306 Assigned........................................................................... - - - - Unassigned....................................................................... - - - -

Total Fund Balances.................................................................. 52,778 1,120 2,988 306

TOTAL LIABILITIES AND FUND BALANCES............... $ 53,911 $ 1,276 $ 3,012 $ 3,095

$ 0 $ 0 $ 0 $ 0


-162-


AMERICANBUDGETED JACKSONVILLE RECOVERY &

TRANSPORTATION GENERAL PUBLIC EMERGENCY TAX INCREMENT CHILDREN'S REINVESTMENTFUND GOVERNMENT SAFETY 9-1-1 DISTRICTS COMMISSION ACT

$ 24,916 $ 23,687 $ 2,286 $ 7,181 $ 1,126 $ 4,337 $ 102

- - - - - - -

- 4 - - - - - - - - - - - - - - - - - - - - - - - - - -

14,484 327 277 - - 5,558 2,720 - 3 - - - - -

$ 39,400 $ 24,021 $ 2,563 $ 7,181 $ 1,126 $ 9,895 $ 2,822

$ 7,936 $ 860 $ 33 $ 327 $ 161 $ 3,321 $ 868 - - - - - - - - - 2,100 - - - 1,950 - - - - - - - - - - - - - - - - - - - - - - 205 - - - - - - - - - - - - - - - - - - -

7,936 1,065 2,133 327 161 3,321 2,818

- 3 - - - - -

- - - - - 6,574 4 31,464 22,953 430 6,854 965 - -

- - - - - - - - - - - - - -

31,464 22,956 430 6,854 965 6,574 4

$ 39,400 $ 24,021 $ 2,563 $ 7,181 $ 1,126 $ 9,895 $ 2,822

# $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

(continued)

-163-

CITY OF JACKSONVILLE, FLORIDACOMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDSSEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands; continued)


COMMUNITYDEVELOPMENT JOB TRAINING MAINTENANCE, METROPOLITAN

BLOCK PARTNERSHIP PARKS AND PLANNINGGRANT ACT GRANT RECREATION ORGANIZATION

ASSETS

Equity in cash and investments............................................................. $ 1,108 $ 676 $ 3,043 $ 125 Cash in escrow and with fiscal agents.................................................. 391 - - - Receivables (net, where applicable, of

allowances for uncollectibles):Accounts ................................................................................ - - - - Mortgages............................................................................... 12,244 - - - Others..................................................................................... - - - -

Due from other funds............................................................................ - - - - Due from independent agencies and other governments...................... 482 - 1 - Prepaid Items........................................................................................ - - 1 -

TOTAL ASSETS................................................................................. $ 14,225 $ 676 $ 3,045 $ 125


LIABILITIES:Accounts payable and accrued liabilities...................................... $ 1,357 $ - $ 203 $ -Contracts payable.......................................................................... - - - - Due to other funds......................................................................... - - 69 - Due to component units................................................................ - - - - Due to individuals......................................................................... - - - - Matured interest payable............................................................... - - - - Deposits......................................................................................... 6 - - - Advances from other funds........................................................... - - - - Unearned revenue......................................................................... 750 - - -

TOTAL LIABILITIES....................................................................... 2,113 - 272 -


Non Spendable................................................................................ - - 1 -

Spendable:Restricted........................................................................................ 12,112 676 - 125 Committed...................................................................................... - - 2,772 - Assigned......................................................................................... - - - - Unassigned...................................................................................... - - - -

Total Fund Balances...................................................................................... 12,112 676 2,773 125

TOTAL LIABILITIES AND FUND BALANCES................................... $ 14,225 $ 676 $ 3,045 $ 125

$ 0 $ 0 $ 0 $ 0


-164-


OTHER FEDERAL, BETTER STATE HOUSING NON-BUDGETED TOTALSSTATE AND JACKSONVILLE HOUSING AND INITIATIVE GENERAL

LOCAL GRANTS PLAN TRUST NEIGHBORHOODS PARTNERSHIP GOVERNMENT 2010 2009

$ 11,712 $ 14,789 $ 3,334 $ 152 $ 15,224 $ 173,340 $ 195,884 46 - 1,834 - 76 3,868 3,278

- - - - 2,530 2,534 2,608 - - 23,274 16,525 - 52,043 38,617 - - - - 15 15 15 - - - - - - -

6,238 10,702 3 - 297 41,320 42,119 - - - - - 4 -

$ 17,996 $ 25,491 $ 28,445 $ 16,677 $ 18,142 $ 273,124 $ 282,521

$ 2,297 $ - $ 394 $ 142 $ 472 $ 19,855 $ 9,508 - - - - - 256 107 - - - - - 4,119 3,000 - - - - - - - - - - - 272 272 203 - - - - - - -

12 - 77 - 16 2,678 2,735 - - - - - - - - - - - 2,526 3,276 3,419

2,309 - 471 142 3,286 30,456 18,972

- - - - - 4 -

15,687 - 27,974 16,535 - 80,807 72,873 - 25,491 - - 14,856 161,857 189,284 - - - - - - 3,707 - - - - - - (2,315)

15,687 25,491 27,974 16,535 14,856 242,668 263,549

$ 17,996 $ 25,491 $ 28,445 $ 16,677 $ 18,142 $ 273,124 $ 282,521

$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 #

(continued)

-165-


OTHERGENERAL NON-BONDED

BONDED DEBT DEBT OBLIGATIONS OBLIGATIONS 2010 2009

ASSETS

Equity in cash and investments............................................. $ - $ 238 $ 238 $ 197 Cash in escrow and with fiscal agents................................... 39 - 39 39 Receivables (net, where applicable, of

allowances for uncollectibles):Accounts ......................................................................... - - - - Mortgages........................................................................ - - - - Others.............................................................................. - - - -

Due from other funds............................................................. - - - - Due from independent agencies and other governments....... - - - - Prepaid Items......................................................................... - - - -

TOTAL ASSETS................................................................. $ 39 $ 238 $ 277 $ 236


LIABILITIES:Accounts payable and accrued liabilities........................... $ - $ - $ - $ -Contracts payable............................................................... - - - - Due to other funds.............................................................. - - - - Due to component units...................................................... - - - - Due to individuals.............................................................. - - - - Matured interest payable.................................................... 39 - 39 39 Deposits.............................................................................. - - - - Advances from other funds................................................ - - - - Unearned revenue............................................................... - - - -

TOTAL LIABILITIES........................................................ 39 - 39 39


Non Spendable................................................................ - - - -

Spendable:Restricted......................................................................... - - - - Committed....................................................................... - - - - Assigned.......................................................................... - 238 238 197 Unassigned...................................................................... - - - -

Total Fund Balances.............................................................. - 238 238 197

TOTAL LIABILITIES AND FUND BALANCES........... $ 39 $ 238 $ 277 $ 236

# ## $ 0 # $ 0 # ## $ 0 $ 0 # $ 0 $ 0 $ 0


TOTALS

DEBT SERVICE FUNDS

-166-

BETTERJACKSONVILLE

PLAN RIVER CITY TOTALSCONSTRUCTION BOND GRANT RENAISSANCE

PROJECT PROJECTS PROJECTS PROJECT 2010 2009

$ 56 $ 61,789 $ 7,434 $ 3,423 $ 72,702 $ 25,906 - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - 24,000

19,693 - 3,497 - 23,190 30,213 - - - - - -

$ 19,749 $ 61,789 $ 10,931 $ 3,423 $ 95,892 $ 80,119

$ 8,465 $ 2,382 $ 1,024 $ 880 $ 12,751 $ 35,595 6,666 264 153 - 7,083 6,400 2,300 - - - 2,300 24,000 2,307 - - - 2,307 -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

19,738 2,646 1,177 880 24,441 65,995

- - - - - -

11 59,143 9,754 2,543 71,451 45,812 - - - - - - - - - - - - - - - - - (31,688)

11 59,143 9,754 2,543 71,451 14,124

$ 19,749 $ 61,789 $ 10,931 $ 3,423 $ 95,892 $ 80,119

$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

(continued)


-167-


PERMANENTFUND

CEMETERYMAINTENANCE

FUNDS

2010 2009 2010 2009ASSETS

Equity in cash and investments........................................................ $ 233 $ 217 $ 246,513 $ 222,204 Cash in escrow and with fiscal agents............................................. - - 3,907 3,317 Receivables (net, where applicable, of

allowances for uncollectibles): Accounts ............................................................................... - - 2,534 2,608 Mortgages.............................................................................. - - 52,043 38,617 Others.................................................................................... - - 15 15

Due from other funds....................................................................... - - - 24,000 Due from independent agencies and other governments................. - - 64,510 72,332 Prepaid Items................................................................................... - - 4 -

TOTAL ASSETS............................................................................ $ 233 $ 217 $ 369,526 $ 363,093


LIABILITIES:Accounts payable and accrued liabilities................................. $ - $ - $ 32,606 $ 45,103 Contracts payable..................................................................... - - 7,339 6,507 Due to other funds.................................................................... - - 6,419 27,000 Due to component units............................................................ - - 2,307 - Due to individuals.................................................................... - - 272 203 Matured interest payable.......................................................... - 39 39 Deposits.................................................................................... - - 2,678 2,735 Advances from other funds...................................................... - - - - Unearned revenue..................................................................... - - 3,276 3,419

TOTAL LIABILITIES.................................................................. - - 54,936 85,006


Non Spendable...................................................................... 123 123 127 123

Spendable:Restricted............................................................................... - - 152,258 118,685 Committed............................................................................. 110 94 161,967 189,378 Assigned................................................................................ - - 238 3,904 Unassigned............................................................................ - - - (34,003)

Total Fund Balances........................................................................ 233 217 314,590 278,087

TOTAL LIABILITIES AND FUND BALANCES..................... $ 233 $ 217 $ 369,526 $ 363,093

$ 0 $ 0 # $ 0 # $ 0 $ 0 $ 0 $ 0


FUNDS

TOTALS

TOTAL NONMAJORGOVERNMENTAL

-168-


-169-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)


AIR POLLUTION CLERKCONCURRENCY CONTROL AND TOURISM OF THEMANAGEMENT MONITORING DEVELOPMENT COURT

REVENUE:Property taxes.................................................................................. $ - $ - $ - $ -

Sales and tourist taxes..................................................................... - - 4,561 -

Intergovernmental........................................................................... - 1,898 - 873

Charges for services........................................................................ 1,429 - - 19,325

Fines and forfeitures........................................................................ - - - -

Interest............................................................................................. 3,986 119 215 4

Other................................................................................................ - - 1,020 424

Total Revenue....................................................................................... 5,415 2,017 5,796 20,626

EXPENDITURES:General government.................................................................... 1,367 - - 20,520 Human services........................................................................... - - - -

Public safety................................................................................ - - - - Culture and recreation................................................................. - - 724 - Transportation............................................................................. 14,988 - - - Economic environment............................................................... - - 6,192 - Physical environment.................................................................. - 2,317 - -

Capital outlay..................................................................................Debt service:

Principal...................................................................................... - - - - Interest on fiscal charges............................................................. - - - - Other........................................................................................... - - - -

Total Expenditures............................................................................... 16,355 2,317 6,916 20,520

EXCESS OF REVENUE OVER (UNDER)EXPENDITURES.......................................................................... (10,940) (300) (1,120) 106

OTHER FINANCING SOURCES (USES):Long term debt issued..................................................................... - - - -

Premium on special obligation bonds payable................................ - - - -

Payment to escrow agent - refunded bonds..................................... - - - -

Transfers in...................................................................................... - 424 - -

Transfers out.................................................................................... (343) (286) - -

Total Other Financing Sources (Uses)................................................. (343) 138 - -

NET CHANGE IN FUND BALANCES........................................... (11,283) (162) (1,120) 106

FUND BALANCES, BEGINNING OF YEAR................................... 64,061 1,282 4,108 200

FUND BALANCES, END OF YEAR............................................... $ 52,778 $ 1,120 $ 2,988 $ 306


-170-


AMERICANBUDGETED JACKSONVILLE RECOVERY &

TRANSPORTATION GENERAL PUBLIC EMERGENCY TAX INCREMENT CHILDREN'S REINVESTMENTFUND GOVERNMENT SAFETY 9-1-1 DISTRICTS COMMISSION ACT

$ - $ - $ - $ - $ 16,639 $ - $ -

91,121 - - - - - -

6,838 1,234 286 - - 34,762 7,813

- 11,139 - 4,918 - - -

- 970 - - - - -

1,407 2,256 41 482 - 201 1

- 684 232 - 74 296 -

99,366 16,283 559 5,400 $ 16,713 35,259 7,814

- 4,576 - - - - - - 939 - - - 24,277 4,149

- 9,866 614 4,895 - - 3,332 - 147 - - - - -

106,975 - - - - - - - - - - 7,066 30,291 - - 4,127 - - - - 129

- - - - - - - - - - - - - - - - - - - - -

106,975 19,655 614 4,895 7,066 54,568 7,610

(7,609) (3,372) (55) 505 9,647 (19,309) 204

- - - - - - -

- - - - - - -

- - - - - - -

- 734 2,275 - - 21,058 -

- (10,125) - - (13,339) - (200)

- (9,391) 2,275 - (13,339) 21,058 (200)

(7,609) (12,763) 2,220 505 (3,692) 1,749 4

39,073 35,719 (1,790) 6,349 4,657 4,825 -

$ 31,464 $ 22,956 $ 430 $ 6,854 $ 965 $ 6,574 $ 4

(continued)

-171-



COMMUNITYDEVELOPMENT JOB TRAINING MAINTENANCE, METROPOLITAN

BLOCK PARTNERSHIP PARKS AND PLANNINGGRANT ACT GRANT RECREATION ORGANIZATION

REVENUE:Property taxes......................................................................... $ - $ - $ - $ -

Sales and tourist taxes............................................................. - - - -

Intergovernmental................................................................... 13,116 - - -

Charges for services................................................................ - - 1,785 -

Fines and forfeitures............................................................... - - - -

Interest.................................................................................... - 47 211 -

Other....................................................................................... 986 - 348 -

Total Revenue.................................................................................. 14,102 47 2,344 -

EXPENDITURES:

General government............................................... - - - - Human services...................................................... - - - -

Public safety........................................................... - - - - Culture and recreation............................................ - - 3,894 - Transportation........................................................ - - 395 - Economic environment.......................................... 6,093 - - - Physical environment............................................. - - - -

Capital outlay.......................................................................... Debt service:

Principal................................................................. - - - - Interest on fiscal charges....................................... - - - - Other ..................................................................... - - - -

Total Expenditures.......................................................................... 6,093 - 4,289 -

EXCESS OF REVENUE OVER (UNDER)

EXPENDITURES................................................................. 8,009 47 (1,945) -

OTHER FINANCING SOURCES (USES):

Long term debt issued............................................................. - - - -

Premium on special obligation bonds payable....................... - - - -

Payment to escrow agent - refunded bonds............................ - - - -

Transfers in............................................................................. 345 - 1,957 -

Transfers out........................................................................... (140) - (1) -

Total Other Financing Sources (Uses)............................................ 205 - 1,956 -

NET CHANGE IN FUND BALANCES...................................... 8,214 47 11 -

FUND BALANCES, BEGINNING OF YEAR.............................. 3,898 629 2,762 125

FUND BALANCES, END OF YEAR.......................................... $ 12,112 $ 676 $ 2,773 $ 125


-172-


OTHER FEDERAL, BETTER STATE HOUSING NON-BUDGETED TOTALSSTATE AND JACKSONVILLE HOUSING AND INITIATIVE GENERAL

LOCAL GRANTS PLAN TRUST NEIGHBORHOODS PARTNERSHIP GOVERNMENT 2010 2009

$ - $ - $ - $ - $ - $ 16,639 $ 15,842

- 61,322 - - - 157,004 161,194

23,088 - 3,422 274 197 93,801 94,556

- - - - 2,436 41,032 42,152

- - - - 1,128 2,098 1,788

737 865 430 97 621 11,720 16,012

82 - 87 496 4,835 9,564 7,115

23,907 62,187 3,939 867 9,217 331,858 338,659

867 - - - 2,590 29,920 31,981 13,603 - - - 523 43,491 37,423

11,687 - - - 2,179 32,573 34,066 1,718 - - - 740 7,223 7,181

- - - - - 122,358 101,598 755 - 4,564 3,008 26 57,995 52,942

73 - - - 21 6,667 8,955 - -

- -

- - - - - - - - - - - - - - - - - - - - -

28,703 - 4,564 3,008 6,079 300,227 274,146

(4,796) 62,187 (625) (2,141) 3,138 31,631 64,513

- - - - - - -

- - - - - - -

- - - - - - -

5,680 - - - - 32,473 31,125

(36) (57,863) - - (2,652) (84,985) (75,132)

5,644 (57,863) - - (2,652) (52,512) (44,007)

848 4,324 (625) (2,141) 486 (20,881) 20,506

14,839 21,167 28,599 18,676 14,370 263,549 243,043

$ 15,687 $ 25,491 $ 27,974 $ 16,535 $ 14,856 $ 242,668 $ 263,549

(continued)

-173-


OTHERGENERAL NON-BONDED

BONDED DEBT DEBTOBLIGATIONS OBLIGATIONS 2010 2009

REVENUE:Property taxes...................................................................... $ - $ - $ - $ -

Sales and tourist taxes.......................................................... - - - -

Intergovernmental................................................................ - - - -

Charges for services............................................................. - - - -

Fines and forfeitures............................................................ - - - -

Interest................................................................................. - 19 19 43

Other.................................................................................... - - - -

Total Revenue............................................................................ - 19 19 43

EXPENDITURES:General government............................................................. - - - - Human services.................................................................... - - - -

Public safety......................................................................... - - - - Culture and recreation.......................................................... - - - - Transportation...................................................................... - - - - Economic environment........................................................ - - - - Physical environment........................................................... - - - -

Capital outlay.......................................................................... - -

Debt service:Principal............................................................................... - 945 945 840 Interest on fiscal charges..................................................... - 356 356 404 Other.................................................................................... - - - -

Total Expenditures..................................................................... - 1,301 1,301 1,244

EXCESS OF REVENUE OVER (UNDER)EXPENDITURES.............................................................. - (1,282) (1,282) (1,201)

OTHER FINANCING SOURCES (USES):Long term debt issued.......................................................... - - - -

Premium on special obligation bonds payable.................... - - - -

Payment to escrow agent - refunded bonds......................... - - - -

Transfers in.......................................................................... - 1,323 1,323 1,254

Transfers out........................................................................ - - - -

Total Other Financing Sources (Uses)....................................... - 1,323 1,323 1,254

NET CHANGE IN FUND BALANCES................................. - 41 41 53

FUND BALANCES, BEGINNING OF YEAR........................ - 197 197 144

FUND BALANCES, END OF YEAR..................................... $ - $ 238 $ 238 $ 197


DEBT SERVICE FUNDS

TOTALS

-174-

BETTERJACKSONVILLE

PLAN RIVER CITY TOTALSCONSTRUCTION BOND GRANT RENAISSANCE

PROJECT PROJECTS PROJECTS PROJECT 2010 2009

$ - $ - $ - $ - $ - $ -

- - - - - -

9,556 - 6,804 - 16,360 17,348

- - - - - 148

- - - - - -

- 4,041 466 297 4,804 2,710

- - - - - 66

9,556 4,041 7,270 297 21,164 20,272

- - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

90,604 17,945 8,318 2,275 119,142 228,526

- -

- - - - - - - - - - - -

8,130 - - - 8,130 -

98,734 17,945 8,318 2,275 127,272 228,526

(89,178) (13,904) (1,048) (1,978) (106,108) (208,254)

110,393 41,165 - - 151,558 135,777

10,484 - - - 10,484 -

- - - - - -

- - 1,726 - 1,726 18,678

- - (333) - (333) -

120,877 41,165 1,393 - 163,435 154,455

31,699 27,261 345 (1,978) 57,327 (53,799)

(31,688) 31,882 9,409 4,521 14,124 67,923

$ 11 $ 59,143 $ 9,754 $ 2,543 $ 71,451 $ 14,124


(continued)

-175-


PERMANENTFUND

CEMETERYMAINTENANCE

FUNDS

2010 2009 2010 2009

REVENUE:Property taxes........................................................................ $ - $ - $ 16,639 $ 15,842

Sales and tourist taxes........................................................... - - 157,004 161,194

Intergovernmental................................................................. - - 110,161 111,904

Charges for services.............................................................. - - 41,032 42,300

Fines and forfeitures.............................................................. - - 2,098 1,788

Interest................................................................................... 16 22 16,559 18,787

Other...................................................................................... - - 9,564 7,181

Total Revenue.................................................................................. 16 22 353,057 358,996

EXPENDITURES:General government.............................................................. - - 29,920 31,981 Human services..................................................................... - - 43,491 37,423

Public safety.......................................................................... - - 32,573 34,066 Culture and recreation........................................................... - - 7,223 7,181 Transportation....................................................................... - - 122,358 101,598 Economic environment......................................................... - - 57,995 52,942 Physical environment............................................................ - - 6,667 8,955

Capital outlay........................................................................... 119,142 228,526

Debt service:Principal................................................................................ - - 945 840 Interest on fiscal charges....................................................... - - 356 404 Other...................................................................................... - - 8,130 -

Total Expenditures........................................................................... - - 428,800 503,916

EXCESS OF REVENUE OVER (UNDER)EXPENDITURES................................................................ 16 22 (75,743) (144,920)

OTHER FINANCING SOURCES (USES):Long term debt issued........................................................... - - 151,558 135,777

Premium on special obligation bonds payable...................... - - 10,484 -

Payment to escrow agent - refunded bonds........................... - - - -

Transfers in............................................................................ - - 35,522 51,057

Transfers out.......................................................................... - - (85,318) (75,132)

Total Other Financing Sources (Uses)............................................. - - 112,246 111,702

NET CHANGE IN FUND BALANCES...................................... 16 22 36,503 (33,218)

FUND BALANCES, BEGINNING OF YEAR.............................. 217 195 278,087 311,305

FUND BALANCES, END OF YEAR.......................................... $ 233 $ 217 $ 314,590 $ 278,087


TOTAL NONMAJORGOVERNMENTAL

FUNDS

TOTALS

-176-


-177-

CITY OF JACKSONVILLE, FLORIDABUDGETARY COMPARISON SCHEDULENONMAJOR GOVERNMENTAL FUNDS (Budgetary Basis) (in thousands)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

VARIANCE WITHFINAL BUDGET -

BUDGETARY POSITIVEORIGINAL FINAL ACTUAL ENCUMBRANCES ACTUAL (NEGATIVE)

REVENUE:Charges for Services $ 1,194 $ 2,021 $ 1,429 $ - $ 1,429 $ (592)Interest 116 1,254 3,986 - 3,986 2,732

Total Revenue 1,310 3,275 5,415 - 5,415 2,140

EXPENDITURES:Planning and Development 15,380 7,166 1,367 101 1,468 5,698 Public Works 37,311 47,490 14,988 3,316 18,304 29,186

Total Expenditures 52,691 54,656 16,355 3,417 19,772 34,884

EXCESS (DEFICIENCY) OF REVENUEOVER (UNDER) EXPENDITURES (51,381) (51,381) (10,940) (3,417) (14,357) 37,024

OTHER FINANCING (USES):Operating transfers out (343) (343) (343) - (343) -

Total Other Financing (Uses) (343) (343) (343) - (343) -

NET CHANGE IN FUND BALANCE (51,724) (51,724) (11,283) (3,417) (14,700) 37,024

FUND BALANCE, BEGINNING 64,061 64,061 64,061 - 64,061 -

FUND BALANCE, ENDING $ 12,337 $ 12,337 $ 52,778 $ (3,417) $ 49,361 $ 37,024

BUDGETED AMOUNTS

FUND 110 - CONCURRENCY MANAGEMENT

-178-




REVENUE:Intergovernmental $ 2,356 $ 3,031 $ 1,898 $ - $ 1,898 $ (1,133)Interest 32 32 119 - 119 87

Total Revenue 2,388 3,063 2,017 - 2,017 (1,046)

EXPENDITURES:Environmental Resource Management 2,859 3,488 2,317 1 2,318 1,170

Total Expenditures 2,859 3,488 2,317 1 2,318 1,170

EXCESS (DEFICIENCY) OF REVENUEOVER (UNDER) EXPENDITURES (471) (425) (300) (1) (301) 124

OTHER FINANCING (USES):Operating transfers in 424 424 424 - 424 - Operating transfers out - (286) (286) - (286) -

Total Other Financing (Uses) 424 138 138 - 138 -

NET CHANGE IN FUND BALANCE (47) (287) (162) (1) (163) 124


FUND BALANCE, ENDING $ 1,235 $ 995 $ 1,120 $ (1) $ 1,119 $ 124

BUDGETED AMOUNTS

FUND 120 - AIR POLLUTION CONTROL AND MONITORING

-179-


FUND 130 - SPORTS, CONVENTION AND TOURISM DEVELOPMENT



REVENUE:Sales and Use Tax $ 4,766 $ 4,766 $ 4,561 $ - $ 4,561 $ (205)Interest 60 173 215 - 215 42 Other 205 1,020 1,020 - 1,020 -

Total Revenue 5,031 5,959 5,796 - 5,796 (163)

EXPENDITURES:Finance 3 3 - - - 3 City Council 8,932 8,917 6,192 834 7,026 1,891 Housing/Neighborhoods 26 31 6 3 9 22 Recreation & Community 922 1,848 718 - 718 1,130


EXCESS (DEFICIENCY) OF REVENUEOVER (UNDER) EXPENDITURES (4,852) (4,840) (1,120) (837) (1,957) 2,883

NET CHANGE IN FUND BALANCE (4,852) (4,840) (1,120) (837) (1,957) 2,883

FUND BALANCE, BEGINNING 4108 4108 4108 - 4,108 -

FUND BALANCE, ENDING $ (744) $ (732) $ 2,988 $ (837) $ 2,151 $ 2,883

BUDGETED AMOUNTS

-180-




REVENUE:Sales and Tourist Taxes $ 113,878 $ 113,878 $ 91,121 $ - $ 91,121 $ (22,757)Intergovernmental 6,707 10,411 6,838 - 6,838 (3,573) Interest 664 3,382 1,407 - 1,407 (1,975)

Total Revenue 121,249 127,671 99,366 - 99,366 (28,305)

EXPENDITURES:Public Works 45,564 45,564 33,113 625 33,738 11,826 Jacksonville Misc Citywide Activities 75,468 73,862 73,862 - 73,862 -


EXCESS (DEFICIENCY) OF REVENUEOVER (UNDER) EXPENDITURES 217 8,245 (7,609) (625) (8,234) (16,479)

NET CHANGE IN FUND BALANCE 217 8,245 (7,609) (625) (8,234) (16,479)


FUND BALANCE, ENDING $ 39,290 $ 47,318 $ 31,464 $ (625) $ 30,839 $ (16,479)

BUDGETED AMOUNTS

FUND 140 - TRANSPORTATION

-181-




REVENUE:Intergovernmental $ 1,258 $ 2,514 $ 1,234 $ - $ 1,234 $ (1,280)Charges for services 12,777 12,777 11,139 - 11,139 (1,638) Fines and forfeitures 890 890 970 - 970 80 Interest 2,623 2,623 2,256 - 2,256 (367) Other 349 368 684 - 684 316

Total Revenue 17,897 19,172 16,283 - 16,283 (2,889)

EXPENDITURES:Courts 3,342 3,331 2,502 20 2,522 809 Environmental Resource Management 2,371 3,772 1,957 99 2,056 1,716 Fire/Rescue 465 465 358 - 358 107 Housing and Neighborhoods 24 24 - - - 24 Jacksonville Citywide Activities 12 12 12 - 12 - Mayor Board 14 27 15 - 15 12 Public Defender 406 433 443 18 461 (28) Planning and Development 9,271 10,053 9,508 1 9,509 544 Public Library 357 357 147 16 163 194 Public Works 13,579 16,773 3,103 4,849 7,952 8,821 Recreation & Community 790 790 593 - 593 197 State Attorney 1,488 1,184 1,017 7 1,024 160 Tax Collector - - - - - -

Total Expenditures 32,119 37,221 19,655 5,010 24,665 12,556


OTHER FINANCING (USES):Operating transfers in 334 734 734 - 734 - Operating transfers out (10,807) (10,125) (10,125) - (10,125) -

Total Other Financing (Uses) (10,473) (9,391) (9,391) - (9,391) -

NET CHANGE IN FUND BALANCE (24,695) (27,440) (12,763) (5,010) (17,773) 9,667



BUDGETED AMOUNTS

FUND 150 - BUDGETED GENERAL GOVERNMENT

-182-




REVENUE:Intergovernmental $ - $ 11,623 $ 286 $ - $ 286 $ (11,337)Charges for Services - 40 - - - (40) Interest - 21 41 - 41 20 Other - 232 232 - 232 -

Total Revenue - 11,916 559 - 559 (11,357)

EXPENDITURES:Central Operations - 45 - - - 45 Environmental - 49 - - - 49 Finance - 7 - - - 7 Fire and Rescue 256 1,438 605 1 606 832 Information Technology - 3 3 - 3 - Jacksonville Economic Dev Comm 2 108 2 - 2 106 Public Works 7 12,241 4 4 8 12,233 Sheriff's Office - 564 - - - 564

Total Expenditures 265 14,455 614 5 619 13,836

EXCESS (DEFICIENCY) OF REVENUEOVER (UNDER) EXPENDITURES (265) (2,539) (55) (5) (60) 2,479

OTHER FINANCING (USES):Operating transfers in - 2,275 2,275 - 2,275 - Operating transfers out - - - - - -

Total Other Financing (Uses) - 2,275 2,275 - 2,275 -

NET CHANGE IN FUND BALANCE (265) (264) 2,220 (5) 2,215 2,479

FUND BALANCE, BEGINNING (1,790) (1,790) (1,790) - (1,790) -

FUND BALANCE, ENDING $ (2,055) $ (2,054) $ 430 $ (5) $ 425 $ 2,479

BUDGETED AMOUNTS

FUND 160 - PUBLIC SAFETY

-183-




REVENUE:Charges for services $ 4,786 $ 4,786 $ 4,918 $ - $ 4,918 $ 132Interest 59 59 482 - 482 423

Total Revenue 4,845 4,845 5,400 - 5,400 555

EXPENDITURES:Jacksonville Citywide Activities 303 303 - - - 303 Office of the Sheriff 6,344 6,344 4,895 270 5,165 1,179


EXCESS (DEFICIENCY) OF REVENUEOVER (UNDER) EXPENDITURES (1,802) (1,802) 505 (270) 235 2,037

NET CHANGE IN FUND BALANCE (1,802) (1,802) 505 (270) 235 2,037


FUND BALANCE, ENDING $ 4,547 $ 4,547 $ 6,854 $ (270) $ 6,584 $ 2,037

BUDGETED AMOUNTS

FUND 170 - EMERGENCY 9 1 1

-184-




REVENUE:Property taxes $ 16,169 $ 16,169 $ 16,639 $ - $ 16,639 $ 470Other 137 137 74 - 74 (63)

Total Revenue 16,306 16,306 16,713 - 16,713 407

EXPENDITURES:Jacksonville Citywide Activities 8,646 7,538 7,047 340 7,387 151 JEDC 439 439 19 420 439 - Planning Department - - - - - -

Total Expenditures 9,085 7,977 7,066 760 7,826 151

EXCESS (DEFICIENCY) OF REVENUEOVER (UNDER) EXPENDITURES 7,221 8,329 9,647 (760) 8,887 558

OTHER FINANCING (USES):Operating transfers out (8,171) (13,720) (13,339) - (13,339) 381

Total Other Financing (Uses) (8,171) (13,720) (13,339) - (13,339) 381

NET CHANGE IN FUND BALANCE (950) (5,391) (3,692) (760) (4,452) 939


FUND BALANCE, ENDING $ 3,707 $ (734) $ 965 $ (760) $ 205 $ 939

BUDGETED AMOUNTS

FUND 180 - TAX INCREMENT DISTRICTS

-185-




REVENUE:Intergovernmental $ 23,444 $ 33,028 $ 34,762 $ - $ 34,762 $ 1,734Interest 149 149 201 - 201 52 Other 286 490 296 - 296 (194)

Total Revenue $ 23,879 $ 33,667 $ 35,259 - $ 35,259 $ 1,592

EXPENDITURES: Jacksonville Children's Commission 47,531 58,003 54,568 3,363 57,931 72

Total Expenditures 47,531 58,003 54,568 3,363 57,931 72


OTHER FINANCING (USES):Operating transfers in 21,058 21,058 21,058 - 21,058 - Operating transfers out - - - - - -

Total Other Financing (Uses) 21,058 21,058 21,058 - 21,058 -

NET CHANGE IN FUND BALANCE (2,594) (3,278) 1,749 (3,363) (1,614) 1,664



BUDGETED AMOUNTS

FUND 190 - JACKSONVILLE CHILDREN'S COMMISSION

-186-

NON-MAJOR ENTERPRISE FUNDS:

Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises and where the costs of providing goods or services to the general public are recovered primarily through user charges; or where the City has decided that determination of net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Individual non-major enterprise funds are described below.

The Public Parking System Fund accounts for the City's on-street, off-street, and parking garage facility operations, including revenue collection and enforcement.

The Storm Water Services Fund accounts for the storm water utility financed by service charges, to be used to pay the expenses of constructing and maintaining the storm water management system. The Motor Vehicle Inspection Fund accounts for the operations of the City's motor vehicle inspection stations.

The Baseball Stadium Fund accounts for events held at the stadium including professional minor league and college baseball games. Times Union Center for the Performing Arts (Performing Arts) Fund - accounts for events held at the center such as the symphony, FCCJ performing arts series, dance recitals and concerts. The Prime Osborn Convention Center (Convention Center) Fund accounts for events held at the center such as gate and trade shows, banquets, meetings and other. The Equestrian Center Fund accounts for events held at the center including horse shows and competitions, rodeos and concerts.

-187-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF NET ASSETSNONMAJOR ENTERPRISE FUNDSSEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

PUBLIC STORM- MOTORPARKING WATER VEHICLE BASEBALLSYSTEM SERVICES INSPECTION STADIUM

ASSETS

CURRENT ASSETS: Equity in cash and investments..................................... $ 62 $ 102 $ 57 $ 363 Cash with fiscal agents.................................................. 1,309 - - 1,486 Receivables (net, where applicable, of

allowances for uncollectibles): Accounts............................................................. - 32,790 61 14

Due from other funds.................................................... , - - - - Inventories..................................................................... - - 8 - Prepaid expenses and other assets................................. - - - 6

Total Current Assets........................................................... 1,371 32,892 126 1,869

NONCURRENT ASSETS:

CAPITAL ASSETS: Land, easements and work in progress......................... 1,768 542 32 - Other capital assets, net of depreciation........................ 7,478 11,369 1 28,044

Total Noncurrent Assets..................................................... 9,246 11,911 33 28,044

TOTAL ASSETS.............................................................. 10,617 44,803 159 29,913

LIABILITIES

CURRENT LIABILITIES:Accounts payable and accrued liabilities...................... 95 2,901 18 135 Due to other funds......................................................... 1,005 2,300 - 164 Accrued compensated absences, current portion.......... 39 180 11 - Deposits ........................................................................ 100 1 - - Accrued interest payable............................................... 64 - - 680 Current portion of bonds payable.................................. 1,245 - - 806 Unearned revenue......................................................... - 7,009 - -

Total Current Liabilities..................................................... 2,548 12,391 29 1,785


Accrued compensated absences.................................... 92 419 26 - Bonds payable............................................................... 1,150 - - 28,289 Other liabilities.............................................................. 112 311 21 -

Total Noncurrent Liabilities............................................... 1,354 730 47 28,289

TOTAL LIABILITIES.................................................... 3,902 13,121 76 30,074

NET ASSETS:

Invested in capital assets, net of related debt................ 7,852 11,911 33 (1,051) Unrestricted (deficit)..................................................... (1,137) 19,771 50 890

TOTAL NET ASSETS (deficit)....................................... $ 6,715 $ 31,682 $ 83 $ (161)

-

-188-

TOTALSPERFORMING CONVENTION EQUESTRIAN

ARTS CENTER CENTER 2010 2009

$ 59 $ 883 $ 99 $ 1,625 $ 20,967 - - 55 2,850 6,053

43 25 7 32,940 10,411 88 46 - 134 -

- - - 8 11 9 6 2 23 -

199 960 163 37,580 37,442

1,000 5,259 - 8,601 8,267 23,479 13,416 13,739 97,526 92,098

24,479 18,675 13,739 106,127 100,365

24,678 19,635 13,902 143,707 137,807

492 397 72 4,110 2,597 200 1 461 4,131 993

- - - 230 225 393 159 8 661 576

26 - 51 821 936 - - 14 2,065 5,116 - - - 7,009 8,488

1,111 557 606 19,027 18,931

- - - 537 525 1,012 - 2,451 32,902 34,811

- - - 444 265

1,012 - 2,451 33,883 35,601

2,123 557 3,057 52,910 54,532

23,467 18,675 11,274 72,161 61,370 (912) 403 (429) 18,636 21,905

$ 22,555 $ 19,078 $ 10,845 $ 90,797 $ 83,275

(continued)

-189-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF REVENUE, EXPENSES, ANDCHANGES IN FUND NET ASSETSNONMAJOR ENTERPRISE FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

PUBLIC STORM- MOTORPARKING WATER VEHICLE BASEBALLSYSTEM SERVICES INSPECTION STADIUM

OPERATING REVENUE:Sales and tourist taxes.......................................................... $ - $ - $ - $ -Charges for services............................................................. 3,383 28,035 431 426 Other................................................... ................................ 3 - - 152

Total Operating Revenue............................................................. 3,386 28,035 431 578

OPERATING EXPENSES: Personal services.................................................................. 1,568 8,933 353 332 Supplies and materials......................................................... 52 266 5 5 Central services.................................................................... 478 3,057 12 - Interdepartmental charges.................................................... 166 35 5 165 Other services and charges.................................................. 803 4,812 100 834 Depreciation and amortization............................................. 390 237 1 638

Total Operating Expenses............................................................ 3,457 17,340 476 1,974

OPERATING INCOME (LOSS).............................................. (71) 10,695 (45) (1,396)

NON-OPERATING REVENUE (EXPENSES): Interest revenue.................................................................... 14 530 6 79 Interest expense................................................................... (128) - - (1,361) Other.................................................................................... 30 - - -

Total Non-Operating Revenue (Expenses).................................. (84) 530 6 (1,282)

INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS......................... (155) 11,225 (39) (2,678)

Transfers in.................................................................................. - 1,294 - 2,696 Transfers out................................................................................ - (2,694) - -

CHANGES IN NET ASSETS..................................................... (155) 9,825 (39) 18

TOTAL NET ASSETS, BEGINNING OF YEAR (DEFICIT).. 6,870 21,857 122 (179)

TOTAL NET ASSETS, END OF YEAR (DEFICIT)............... $ 6,715 $ 31,682 $ 83 $ (161)

-190-

TOTALS

PERFORMING CONVENTION EQUESTRIANARTS CENTER CENTER 2010 2009

$ - $ 4,238 $ - $ 4,238 $ 4,3661,760 795 203 35,033 36,498

711 937 121 1,924 1,764 2,471 5,970 324 41,195 42,628

800 1,307 360 13,653 13,977 24 23 13 388 451 46 88 54 3,735 2,873

515 286 91 1,263 1,192 2,000 1,452 458 10,459 9,030

761 648 718 3,393 3,163 4,146 3,804 1,694 32,891 30,686

(1,675) 2,166 (1,370) 8,304 11,942

- 32 - 661 1,508 (119) - (122) (1,730) (7)

- - 2 32 4,120 (119) 32 (120) (1,037) 5,621

(1,794) 2,198 (1,490) 7,267 17,563

988 - 820 5,798 10,708 - (2,849) - (5,543) (10,129)

(806) (651) (670) 7,522 18,142

23,361 19,729 11,515 83,275 65,133

$ 22,555 $ 19,078 $ 10,845 $ 90,797 $ 83,275

(continued)

-191-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

PUBLIC STORM - MOTORPARKING WATER VEHICLESYSTEM SERVICES INSPECTION

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers......................................................................................... $ 3,386 $ 3,998 $ 428 Payments to suppliers............................................................................................. (1,482) (7,112) (114) Payments to employees........................................................................................... (1,525) (8,779) (353) Internal activity - receipts from other funds........................................................... 935 2,300 - Internal activity - payments to other funds............................................................. - - - Other receipts.......................................................................................................... 37 - - Other operating cash payments.......................................................................... (196) (34) (5)

NET CASH PROVIDED BY (USED IN)

N OPERATING ACTIVITIES.............................. 1,155 (9,627) (44)

NONCAPITAL FINANCING ACTIVITIES: Cash received through transfers from other funds.................................................... - 1,294 - Cash payments through transfers to other funds....................................................... - (2,694) -

NET CASH PROVIDED BY (USED IN) NONCAPITAL FINANCING ACTIVITIES............................................................................ - (1,400) -

CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets.......................................................... - (9,100) - Proceeds from the sale of capital assets.................................................................... - - - Increase in construction fund cash and investments................................................. 3,157 - - Principal paid on long-term obligations.................................................................... (4,140) - - Interest and payments to refunded bond escrow agent............................................. (128) - -

NET CASH PROVIDED BY (USED IN) CAPITAL AND RELATED FINANCING ACTIVITIES......................................................... (1,111) (9,100) -

INVESTING ACTIVITIES:

Interest and dividends on investments...................................................................... 14 530 6

NET CASH PROVIDED BY INVESTING ACTIVITIES................................. 14 530 6

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS................................................................................. 58 (19,597) (38)

Cash and cash equivalents at October 1, 2009.......................................................... 4 19,699 95

Cash and cash equivalents at September 30, 2010................................................... $ 62 $ 102 $ 57

-192-

TOTALS

BASEBALL PERFORMING CONVENTION EQUESTRIANSTADIUM ARTS CENTER CENTER 2010 2009

$ 558 $ 2,486 $ 5,985 $ 322 $ 17,163 $ 36,064 (1,463) (1,712) (1,473) (554) (13,910) (9,797)

(332) (800) (1,307) (360) (13,456) (13,157) 164 - - 41 3,440 790

- (388) (47) - (435) - 680 57 - 53 827 1,808

(173) (515) (261) (92) (1,276) (1,198)

(566) (872) 2,897 (590) (7,647) $ 14,510

2,696 988 - 820 5,798 10,708 - - (2,849) - (5,543) (10,129)

2,696 988 (2,849) 820 255 579

(6) (5) (10) (8) (9,129) (3,141) 5 - - - 5 -

(20) 26 16 24 3,203 (1,933) (774) - (15) (33) (4,962) (4,756)

(1,361) (119) - (122) (1,730)

(2,156) (98) (9) (139) (12,613) (9,830)

79 - 32 2 663 1,501

79 - 32 2 663 1,501

53 18 71 93 ($ 19,342) $ 6,760

310 41 812 6 20,967 14,207

$ 363 $ 59 $ 883 $ 99 $ 1,625 $ 20,967

(continued)

-193-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands; continued)

PUBLIC STORM - MOTORPARKING WATER VEHICLESYSTEM SERVICES INSPECTION

RECONCILIATION OF OPERATING (LOSS) TO NET CASH USED IN OPERATING ACTIVITIES:

OPERATING INCOME (LOSS).............................................................................. ($ 71) $ 10,695 ($ 45)Adjustments to reconcile operating income (loss)

to net cash provided by (used in) operating activities:Depreciation ................................................................................................ 390 237 1

(Increase) decrease in assets:Receivables and other current assets, net............................................................ - (22,562) (3)Due from other funds........................................................................................... - - - Inventories........................................................................................................... - - 3Prepaid expenses.................................................................................................. - - -

Increase (decrease) in liabilities:Accounts payable and accrued expenses............................................................. 21 994 1Due to other funds............................................................................................… 935 2,300 - Contracts payable................................................................................................. - 29 - Deposit................................................................................................................. 8 1 - Unearned revenue................................................................................................ - (1,475) - Other liabilities.................................................................................................... 28 146 5 Interest payable.................................................................................................... (171) - - Accrued compensated absences........................................................................... 15 8 (6)

TOTAL ADJUSTMENTS........................................................................... 1,226 (20,322) 1

NET CASH PROVIDED(USED IN)OPERATING ACTIVITIES........................................................ $ 1,155 ($ 9,627) ($ 44)

NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:Change in the fair value of investments......................................................................... $ 3 $ 264 $ 2

-194-

TOTALS

BASEBALL PERFORMING CONVENTION EQUESTRIANSTADIUM ARTS CENTER CENTER 2010 2009

($ 1,396) ($ 1,675) $ 2,166 ($ 1,370) $ 8,304 $ 11,942

638 761 648 718 3,393 3,163

(13) 24 21 4 (22,529) (5,814) - (88) (46) - (134) 10 - - - - 3 3

(6) (9) (6) (2) (23) 40

725 317 25 67 2,150 1,608 164 (300) (1) 40 3,138 780

- - - - 29 28 (8) 57 25 1 84 38

- - - (4) (1,479) 974 - - - - 179 214

(670) 41 65 (44) (779) 918 - - - - 17 606

830 803 731 780 (15,951) 2,568

($ 566) ($ 872) $ 2,897 ($ 590) ($ 7,647) $ 14,510

$ 5 ($ 24) ($ 85) ($ 5) $ 160 $ 605

(continued)

-195-


-196-

INTERNAL SERVICE FUNDS

Internal Service Funds account for the financing of goods and services provided by one City department or agency to other City departments or agencies on a cost-reimbursement basis. Descriptions of individual funds in this category are presented below.

The Fleet Management Fund accounts for the operation of the City's fleet of police cars, fire and rescue vehicles, public works and public utilities trucks, and many other types of on- and off-road automotive equipment.

The Copy Center Fund accounts for the operation of the centralized copy center, mail and messenger service functions for City agencies.

The Information Technologies Fund accounts for centralized information management and computer services that includes data processing, central telephone and network communications, and other voice/data electronic media services.

The Legal Fund accounts for centralized legal services to all City departments and agencies through the Office of General Counsel.

The Self-Insurance Fund accounts for centralized risk management and safety and loss prevention services to all City departments that are self-insured for workers' compensation, public, and general and vehicle liability.

The Group Health Fund accounts for employee health and life insurance premiums and manages third party health care contracts to all City employees.

The Insured Programs Fund accounts for providing all forms of property and casualty, commercial liability and other types of coverage to City departments. The Banking Fund accounts for commercial paper issued for short intermediate life assets such as personal computers, vehicles, application software, equipment, etc.

-197-

COMBINING STATEMENT OF NET ASSETSINTERNAL SERVICE FUNDSSEPTERBER 30,2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

FLEET COPY INFORMATIONMANAGEMENT CENTER TECHNOLOGIES

ASSETSCURRENT ASSETS:

Equity in cash and investments............................................. $ 8,811 $ 2 $ 8,628 Cash with fiscal agents.......................................................... - - - Accounts receivable.............................................................. - - - Loans receivables.................................................................. - - - Other receivables.................................................................... - - - Due from independent agencies and other governments...... 1,038 - 69 Inventories............................................................................. 1,490 - 516 Prepaid expenses and other assets......................................... - - -

Total Current Assets.................................................................... 11,339 2 9,213

NONCURRENT ASSETS:Advances to other funds........................................................ - - - Loans receivable - noncurrent............................................... - - - Other receivables - noncurrent.............................................. - - -

Total Noncurrent Assets.............................................................. - - -

CAPITAL ASSETS AND INFRASTRUCTURE Land and work in progress.................................................... 181 - 22 Other capital assets, net of depreciation................................ 42,927 4 24,811

Total Capital Assets, Net............................................................. 43,108 4 24,833

TOTAL ASSETS....................................................................... 54,447 6 34,046

LIABILITIES

CURRENT LIABILITIES: Accounts payable and accrued liabilities.............................. 2,635 97 4,069 Due to other funds................................................................. - 13 - Capitalized lease obligations, current portion....................... - - - Deposits................................................................................. - - - Unearned revenue.................................................................. - - - Accrued compensated absences, current portion.................. 201 17 502 Current interest payable........................................................ - - - Current portion of bonds payable.......................................... - - - Current portion of notes payable........................................... - - - Current portion of loans payable........................................... 7,045 - 2,755

Total Current Liabilities.............................................................. 9,881 127 7,326

NONCURRENT LIABILITIES: Notes payable........................................................................ - - - Estimated liability for self-insured losses............................. - - - Accrued compensated absences............................................ 470 39 1,170 Loans payable........................................................................ 14,166 - 3,679 Bonds payable....................................................................... - - - Other liabilities...................................................................... 348 22 494

Total Long-Term Liabilities........................................................ 14,984 61 5,343

TOTAL LIABILITIES............................................................. 24,865 188 12,669

NET ASSETS: Invested in capital assets, net of related debt........................ 21,897 4 18,399 Restricted - other participant's equity.................................... - - - Unrestricted .......................................................................... 7,685 (186) 2,978

TOTAL NET ASSETS (DEFICIT)........................................... $ 29,582 $ (182) $ 21,377

-198-

TOTALSSELF- GROUP INSURED BANKING

LEGAL INSURANCE HEALTH PROGRAMS FUND 2010 2009

$ 2,465 $ 70,148 $ 3,303 $ 6,368 $ 32,380 $ 132,105 $ 121,762

- - - - 9,114 9,114 - - 54 150 - - 204 60 - - - - 47,352 47,352 53,095 - 1,499 - - - 1,499 1,607

465 53 - - - 1,625 1,319 - - - - - 2,006 1,750 - 435 - 2,358 3,709 6,502 4,643

2,930 72,189 3,453 8,726 92,555 200,407 184,236

- 7,807 - - - 7,807 8,500 - - - - 186,390 186,390 86,680 - 13,894 - - - 13,894 14,328

- 21,701 - - 186,390 208,091 109,508

- - - - - 203 203 10 67 20 6 - 67,845 74,426 10 67 20 6 - 68,048 74,629

2,940 93,957 3,473 8,732 278,945 476,546 368,373

414 120 50 22 392 7,799 14,095 - - - - - 13 720 - - - - - - 313 - - 2 - - 2 2 - - - 2,358 - 2,358 2,509

252 16 31 20 - 1,039 1,100 - - - - 2,970 2,970 - - - - - 6,144 6,144 - - - - - - - 40,315 - - - - - 9,800 21,491

666 136 83 2,400 9,506 30,125 80,545

- - - - 55,000 55,000 33,500 - 83,657 18 - - 83,675 86,750

588 38 73 46 - 2,424 2,568 - - - - - 17,845 19,890 - - - - 206,928 206,928 83,155

199 51 34 11 - 1,159 853 787 83,746 125 57 261,928 367,031 226,716

1,453 83,882 208 2,457 271,434 397,156 307,261

10 67 20 6 - 40,403 53,480 - 1,652 - - - 1,652 4,271

1,477 8,356 3,245 6,269 7,511 37,335 3,361

$ 1,487 $ 10,075 $ 3,265 $ 6,275 $ 7,511 $ 79,390 $ 61,112

(continued)

-199-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF REVENUE, EXPENSES, ANDCHANGES IN FUND NET ASSETSINTERNAL SERVICE FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)


OPERATING REVENUE: Charges for services...................................................................... $ 45,030 $ 2,149 $ 43,556 Charges for services for independent authorities.......................... 8,337 - 883 Other.............................................................................................. 903 - 2

Total Operating Revenue..................................................................... 54,270 2,149 44,441

OPERATING EXPENSES: Personal services........................................................................... 7,174 397 15,647 Supplies and materials................................................................... 24,284 708 2,078 Central services............................................................................. 1,731 41 4,093 Other services and charges............................................................ 3,541 638 11,578 Depreciation.................................................................................. 15,128 265 5,491 Court reporter services.................................................................. - - - Claims and losses.......................................................................... - - - Insurance premiums and participant dividends............................. 122 2 204

Total Operating Expenses................................................................... 51,980 2,051 39,091

OPERATING INCOME (LOSS)..................................................... 2,290 98 5,350

NON-OPERATING REVENUE (EXPENSES):

Interest .......................................................................................... 210 (41) 20 Other.............................................................................................. 859 193 1,196 Total Non-Operating Revenue (Expenses) ......................................... 1,069 152 1,216

INCOME (LOSS) BEFORE CONTRIBUTIONS AND OPERATING TRANSFERS......................................................... 3,359 250 6,566

Transfers Transfers in...................................................................................... 1,447 - 500 Transfers out.................................................................................... (60) - - Net Transfers 1,387 - 500

CHANGE IN NET ASSETS............................................................. 4,746 250 7,066

NET ASSETS, BEGINNING OF YEAR........................................ 24,836 (432) 14,311

NET ASSETS, END OF YEAR (DEFICIT).................................. $ 29,582 $ (182) $ 21,377

-200-



$ 7,401 $ 26,153 $ 87,044 $ 8,445 $ 6,290 $ 226,068 $ 210,9242,484 - - - - 11,704 9,369

9 5 158 - - 1,077 974

9,894 26,158 87,202 8,445 6,290 238,849 221,267

7,277 1,233 784 415 - 32,927 33,294 39 52 5 6 - 27,172 22,638

782 1,262 326 215 - 8,450 8,571 1,539 6,017 372 46 6,364 30,095 24,563

3 23 2 1 - 20,913 22,944 66 - - - - 66 35

- 16,846 - - - 16,846 19,916 39 401 84,999 7,481 - 93,248 87,872

9,745 25,834 86,488 8,164 6,364 229,717 219,833

149 324 714 281 (74) 9,132 1,434

158 4,973 618 591 2,430 8,959 10,733 - (4) - - 2,588 4,832 (2,267)

158 4,969 618 591 5,018 13,791 8,466

307 5,293 1,332 872 4,944 22,923 9,900

750 1,072 - - - 3,769 4,346 (922) (7,032) - (400) - (8,414) - (172) (5,960) - (400) - (4,645) 4,346

135 (667) 1,332 472 4,944 18,278 14,246

1,352 10,742 1,933 5,803 2,567 61,112 46,866

$ 1,487 $ 10,075 $ 3,265 $ 6,275 $ 7,511 $ 79,390 $ 61,112

(continued)

-201-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)


CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers.............................................................................. $ 54,671 $ 2,345 $ 49,113 Payments to suppliers.................................................................................. (28,479) (1,453) (17,540) Payments to employees................................................................................ (7,225) (386) (15,542) Internal activity- receipts from other funds................................................. - - - Internal activity-payments to other funds.................................................... - (347) (360) Other receipts............................................................................................... 88 - - Other operating cash payments.................................................................... (1,448) (118) (1,374)

NNET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES. 17,607 41 14,297

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash received through transfers from other funds......................................... 1,447 - 500Cash payments through transfers to other funds............................................ (60) - -

NET CASH PROVIDED BY (USED IN) NONCAPITAL FINANCING ACTIVITIES....................................... 1,387 - 500

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Acquisition and construction of capital assets............................................... (7,936) - (5,404) Proceeds from the sale of capital assets......................................................... 965 - - Decrease in capitalized lease obligations...................................................... - - - Proceeds from loans receivables................................................................... - - - Proceeds from loans payable......................................................................... - - 2,596 Payments on loans payable........................................................................... (9,560) - (3,386) Payments on notes payable............................................................................ - - - Proceeds from bonds payable....................................................................... - - - Interest and payments to bond escrow agent................................................ - - -

NET CASH PROVIDED BY (USED IN) CAPITAL AND RELATED FINANCING ACTIVITIES.............................................. (16,531) - (6,194)

CASH FLOWS FROM INVESTING ACTIVITIES:Interest and Dividends................................................................................... 210 (41) 20

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES.................................................................. 210 (41) 20

NET INCREASE (DECREASE) IN EQUITY IN CASH AND CASH EQUIVALENTS................................................................................... 2,673 - 8,623

Equity in cash and investments at October 1, 2009.................................. 6,138 2 5

Equity in cash and investments at September 30, 2010........................... $ 8,811 $ 2 $ 8,628

-202-



$ 10,008 $ 27,340 $ 87,052 $ 8,596 $ 6,290 $ 245,415 $ 218,955 (2,110) (6,688) (91,900) (8,240) (11,735) (168,145) (140,187)(7,242) (1,212) (807) (410) - (32,824) (32,714)

- - - - - - 570- - - - (97,352) (98,059) - - - - 421 1,955 2,464 4,318

(421) (21,051) (145) (83) - (24,640) (28,171)

235 (1,611) (5,800) 284 (100,842) (75,789) 22,771

750 1,072 - - - 3,769 4,346 (922) (7,032) - (400) - (8,414) -

(172) (5,960) - (400) - (4,645) 4,346

- (7) (24) - - (13,371) (25,312)- - - - - 965 - - - - - - - (296)- - - - - - (13,474)- - - - 2,596 23,195- - - - - (12,946) (16,611)- - - - (18,815) (18,815) (25,700)- - - - 132,504 132,504 28,940- - - - (9,114) (9,114) -

- (7) (24) - 104,575 81,819 (29,258)

157 4,973 618 591 2,430 8,958 10,733

157 4,973 618 591 2,430 8,958 10,733

220 (2,605) (5,206) 475 6,163 10,343 8,592

2,245 72,753 8,509 5,893 26,217 121,762 113,170

$ 2,465 $ 70,148 $ 3,303 $ 6,368 $ 32,380 $ 132,105 $ 121,762

(continued)

-203-

COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands; continued)


RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:Operating income (loss) ................................................................................ $ 2,290 $ 98 $ 5,350 Adjustments to reconcile operating income (loss)

to net cash provided by operating activities: Depreciation and amortization.............................................................. 15,128 265 5,491

(Increase) decrease in assets:Receivables and other current assets, net................................................. - - - Due from other funds................................................................................ - - - Advances to other funds...........................................................................Due from independent agencies and other governments.......................... (458) 1 90 Other receivables............................................................................................. - - - Loans receivables.................................................................... - - 3,386 Inventories................................................................................................ (250) - (6) Prepaid expenses...................................................................................... - - -

Increase (decrease) in liabilities:Accounts payable and

accrued liabilities.................................................................................. 948 13 241 Due to other funds.................................................................................... - (347) (360) Loans payable...........................................................................................Compensated absences............................................................................. (145) 5 (25) Other liabilities......................................................................................... 94 6 130 Unearned revenue..................................................................................... - - - Liability for self-insured losses................................................................ - - -

TOTAL ADJUSTMENTS.................................................................... 15,317 (57) 8,947

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES........................................................... $ 17,607 $ 41 $ 14,297

NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:Change in the fair value of investments.............................................................. $ 246 $ 22 $ 230

-204-



$ 149 $ 324 $ 714 $ 281 ($ 74) $ 9,132 $ 7,001

3 23 2 1 - 20,913 22,944

- 6 (150) - - (144) 5- - - - - - 12

693 - - - 693 664114 (53) - - - (306) 1,230

- 544 - - - 544 565- - - - (97,352) (93,966) (13,749)- - - - - (256) 393- (25) - 151 (1,985) (1,859) (308)

(66) (69) (6,343) (3) 1,955 (3,324) (1,021)- - - - - (707) 570

- (3,386) (3,386)(16) 7 (31) 2 - (203) 16051 14 8 3 - 306 420

- - - (151) - (151) 78- (3,075) - - - (3,075) 3,807

86 (1,935) (6,514) 3 (100,768) (84,921) 15,770

$ 235 ($ 1,611) ($ 5,800) $ 284 ($ 100,842) ($ 75,789) $ 22,771

$ 4 ($ 957) (78)$ ($ 229) ($ 593) ($ 1,355) $ 5,033

(continued)

-205-


-206-

FIDUCIARY FUNDS Fiduciary Funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. Below are descriptions of the generic fund types within this category and specific funds within each fund type.

PENSION TRUST FUNDS are funds administered by independent boards for which the City performs a fiduciary role under a defined benefit, defined contribution and disability programs. The participant's retirement annuity is based on a statutory formula utilizing such factors as age, average salary, length of service and others. The City has two pension trust funds as described below.

The Jacksonville Retirement System Fund includes resources accumulated to pay present and future retirement annuities to eligible employees of the City except for sworn officers of the Office of the Sheriff and the firefighters in the Department of Fire and Rescue. The Police and Fire Pension Trust Fund accounts for a single employer, contributory defined benefit plan for City police officers and firefighters.

AGENCY FUNDS are funds which hold monies in an agency capacity for various government units, individuals or funds. Individual fund descriptions follow.

The Treasurer Fund is the clearing fund used to account for all cash received and disbursed on behalf of the City's payroll. The Tax Collector Fund accounts for assets and liabilities from the collection of all taxes, revenues and other cash amounts on behalf of the City and various of its agencies, authorities, organizations, individuals, and funds. Clerk of the Circuit Court accounts for assets and liabilities from revenues collected on behalf of the state and the city by the court system for various judgments, fines, bonds, fees and licenses and other miscellaneous amounts. Plat Deposits Fund accounts for the deposits placed with the City as collateral to insure the completion of improvements in the event of default by a developer or failure by the developer to complete improvements within the time specified by the ordinance approving the Final Plat. The Duval County School Readiness Coalition Fund accounts for the assets and liabilities from revenues collected on behalf of the Duval County School Readiness Coalition from the State, pursuant to Florida Statute 411.01, to provide comprehensive programs of readiness services to children. The Florida Retirement System Fund accounts for a multiple-employer, cost-sharing defined benefit plan for certain City employees who elected to remain with the State of Florida Retirement System.

The Office of the Sheriff accounts for deposits held in accordance with statutes for civil action, safeguarding of monetary evidence, and inmate funds.

-207-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF FIDUCIARY NET ASSETS - PENSION TRUST FUNDSSEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

GENERAL CORRECTIONS DISABILITY DEFINED POLICE TOTALSEMPLOYEES OFFICERS PENSION CONTRIBUTION AND FIRE

PLAN PLAN PLAN PLAN PENSION PLAN 2010 2009ASSETS

Equity in cash and investments......................................... $ 27,659 $ 15,884 $ 1,671 $ - $ 2,297 $ 47,511 $ 49,197

Receivables (net, where applicable, ofallowances for uncollectible):Interest and dividends................................................... 4,029 - - - 2,680 6,709 6,682 Accounts....................................................................... - - - - 258 258 189 Other............................................................................. 1,263 626 29 8 - 1,926 -

Due from independent agencies and other governments... - - - - 4,187 4,187 - Due from component units................................................ 1,155 - 29 - - 1,184 -

Investments, at fair value:U.S. Government obligations....................................... 45,994 - - - 92,830 138,824 81,855 Federal Agencies.......................................................... 120,064 - - - - 120,064 117,271 Municipal Bonds.......................................................... - - - - - - - Domestic corporate bonds............................................ 284,402 - - - 150,001 434,403 442,147 Short-term Investments................................................ 10,541 - - - - 10,541 37,319 Commercial paper........................................................ - - - - - - - Domestic stocks............................................................ 609,149 - - - 405,613 1,014,762 972,251 International stocks....................................................... 254,693 - - - 215,688 470,381 374,912 Real Estate.................................................................... 89,802 - - - 85,985 175,787 171,227 Other Fixed Income...................................................... 56,804 - - - 56,804 60,509 Alternative investments................................................ 39,845 39,845 43,556 Equity in pooled investments....................................... (83,548) 83,548 - 235 12,176 12,411 -

Total investments...................................................... 1,427,746 83,548 - 235 962,293 2,473,822 2,301,047

Capital assets:Land.............................................................................. - Other capital assets, net of depreciation....................... 1 - - - 22 23 49

Net capital assets...................................................... 1 - - - 22 23 -

Securities Lending Collateral............................................ 101,131 5,915 - - - 107,046 103,599

TOTAL ASSETS............................................................. 1,562,984 105,973 1,729 243 971,737 2,642,666 2,460,763

LIABILITIES

Obligations Under Securities Lending Agreement..... 102,333 5,986 - - - 108,319 105,108 Accounts payable and accrued liabilities.................... 4,503 297 5 12 4,323 9,140 7,677 Accrued Compensated Absences................................ 69 - - - 32 101 88 Terminal Leave - Group Care..................................... - - - - 326 326 - Terminal Leave - Pending........................................... - - - - - - - Due toParticipants....................................................... - 10,068 - - 183,700 193,768 175,854

TOTAL LIABILITIES.................................................. 106,905 16,351 5 12 188,381 311,654 288,727

NET ASSETS HELD IN TRUST FOR PENSION BENEFITS................................................. $ 1,456,079 $ 89,622 $ 1,724 $ 231 $ 783,356 $ 2,331,012 $ 2,172,036

(See schedule of funding progress on pages 155 -156.)

PENSION TRUST FUNDS JACKSONVILLE

RETIREMENT SYSTEM

-208-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETSPENSION TRUST FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

POLICEGENERAL CORRECTIONS DISABILITY DEFINED AND FIRE TOTALS

EMPLOYEES OFFICERS PENSION CONTRIBUTION PENSIONPLAN PLAN PLAN PLAN PLAN 2010 2009

ADDITIONS

Contributions:Employer..................................................... $ 40,551 $ 9,491 $ 571 $ 99 $ 84,542 $ 135,254 $ 84,927Plan Member............................................... 25,196 2,632 1,162 91 12,222 41,303 37,188

Total contributions................................... 65,747 12,123 1,733 190 96,764 176,557 122,115

Other additions: State insurance contributions....................... - - - - 8,829 8,829 8,901 Court fines & penalties................................ - 485 - - 1,026 1,511 1,456 Contributions from other governmental uni - - - - - - 4,286 Miscellaneous.............................................. - - - - 81 81 186 Transfers in.................................................. - - - 37 - 37 -

Total other additions................................ - 485 - 37 9,936 10,458 14,829

Investment income:Net appreciation in fair value of investment 123,557 7,013 - 8 52,702 183,280 (77,655) Interest......................................................... 21,004 1,168 - 1 12,747 34,920 42,257 Dividends..................................................... 8,515 1,485 65 - 8,075 18,140 19,690 Rebate of Commissions............................... 31 - - - 53 84 169 Rental Income.............................................. - - - - 2,027 2,027 1,874 Other miscellaneous.................................... (2) - - - - (2) 8

Total investment income (loss)................ 153,105 9,666 65 9 75,604 238,449 (13,657) Less investment expense.......................... (5,458) (293) - - (4,505) (10,256) (10,442) Less rental expense.................................. - - - - (351) (351) (205) Net investment income (loss)................... 147,647 9,373 65 9 70,748 227,842 (24,304)

From Securities Lending Activities:Securities Lending....................................... 526 24 - - - 550 2,601 Securities Lending Expenses.......................

Interest Expense (returned to borrower).. (63) (3) - - - (66) (316) Agent Fees............................................... (58) (3) - - - (61) (24) Total securities lending activities ............ 405 18 - - - 423 2,261

TOTAL ADDITIONS................................... 213,799 21,999 1,798 236 177,448 415,280 114,901

DEDUCTIONS

Benefits payments........................................... 116,290 1,859 74 - 88,493 206,716 195,807 DROP Benefits ............................................... - 5,045 - - 31,761 36,806 31,908 Refunds of contributions................................. 8,329 747 - 5 191 9,272 8,074 Transfers out................................................... 37 - - - - 37 - Administrative expenses................................. 775 560 - - 2,138 3,473 2,900

TOTAL DEDUCTIONS............................... 125,431 8,211 74 5 122,583 256,304 238,689

Net change in net assets............................... 88,368 13,788 1,724 231 54,865 158,976 (123,788)

NET ASSETS, BEGINNING OF YEAR.... 1,367,711 75,834 - - 728,491 2,172,036 2,295,824

NET ASSETS, END OF YEAR................... $ 1,456,079 $ 89,622 $ 1,724 $ 231 $ 783,356 $ 2,331,012 $ 2,172,036

PENSION TRUST FUNDS

RETIREMENT SYSTEM JACKSONVILLE

-209-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIESAGENCY FUNDSSEPTEMBER 30, 2010WITH COMPARATIVE TOTALS FOR 2009 (in thousands)

CLERK OF THE

TAX CIRCUITTREASURER COLLECTOR COURTS

ASSETS:Equity in cash and investments................................................. $ 134 $ 13,094 $ 22,216 Receivables (net, where applicable, of

allowances for uncollectibles): Accounts.............................................................................. 25 - 2,284

TOTAL ASSETS........................................................................ $ 159 $ 13,094 $ 24,500

LIABILITIES:

Accounts payable and accrued liabilities.................................. $ 159 $ - $ -Due to independent agencies and other governments............... - 7,062 9,007 Due to individuals..................................................................... - 2,784 2,528 Deposits held in escrow............................................................. - 3,248 12,965 Miscellaneous liabilities............................................................ - - -

TOTAL LIABILITIES.............................................................. $ 159 $ 13,094 $ 24,500

-210-

DUVAL COSCHOOL FLORIDA SHERIFF'S TOTALS

PLAT READINESS RETIREMENT AGENCYDEPOSITS COALITION SYSTEM FUND 2010 2009

$ 241 $ 26 $ 51 $ 2,215 $ 37,977 $ 64,238

- - - - 2,309 3,137

$ 241 $ 26 $ 51 $ 2,215 $ 40,286 $ 67,375

$ - $ 26 $ 5 $ - $ 190 $ 227- - 46 10 16,125 28,235 - - - - 5,312 4,627

241 - - 1,395 17,849 34,286 - - - 810 810 -

$ 241 $ 26 $ 51 $ 2,215 $ 40,286 $ 67,375

-211-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESFIDUCIARY FUNDS - ALL AGENCY FUNDS (in thousands)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

BALANCE BALANCEOCTOBER 1, SEPTEMBER 30,

2009 ADDITIONS DEDUCTIONS 2010

TREASURER

ASSETS

Equity in cash and investments............................................. 148$ 868,560$ 868,574$ 134$ Accounts receivable............................................................... 25 25 25 25

TOTAL ASSETS................................................................... 173$ 868,585$ 868,599$ 159$

LIABILITIES

Accounts payable and accrued liabilities............................... 173$ 194,339$ 194,353$ 159$

TOTAL LIABILITIES.......................................................... 173$ 194,339$ 194,353$ 159$

TAX COLLECTOR

ASSETS

Equity in cash and investments............................................. 39,663$ 29,695$ 56,264$ 13,094$ Accounts receivable............................................................... - - - -

TOTAL ASSETS................................................................... 39,663$ 29,695$ 56,264$ 13,094$

LIABILITIES

Due to independent agencies and other governments........... 18,453$ -$ 11,391$ 7,062$ Due to individuals.................................................................. 2,840 - 56 2,784Deposits held in escrow......................................................... 18,370 41,142 56,264 3,248

TOTAL LIABILITIES.......................................................... 39,663$ 41,142$ 67,711$ 13,094$

-212-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESFIDUCIARY FUNDS - ALL AGENCY FUNDS (in thousands; continued)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010



CLERK OF THE CIRCUIT COURT

ASSETS

Equity in cash and investments............................................. 24,096$ -$ 1,880$ 22,216$ Accounts receivable............................................................... 3,111 - 827 2,284

TOTAL ASSETS................................................................... 27,207$ -$ 2,707$ 24,500$

LIABILITIES

Due to independent agencies and other governments........... 9,744$ -$ 737$ 9,007$ Due to individuals.................................................................. 1,787 741 - 2,528 Deposits held in escrow......................................................... 15,676 - 2,711 12,965

TOTAL LIABILITIES.......................................................... 27,207$ 741$ 3,448$ 24,500$

PLAT DEPOSITS

ASSETS

Equity in cash and investments............................................. 254$ 37$ 50$ 241$

TOTAL ASSETS................................................................... 254$ 37$ 50$ 241$

LIABILITIES

Accounts payable and accrued liabilities............................... 14$ 14$ 28$ -$ Deposits held in escrow......................................................... 240 52 51 241

TOTAL LIABILITIES.......................................................... 254$ 66$ 79$ 241$

DUVAL CO SCHOOL READINESS COALITION

ASSETS

Equity in cash and investments............................................. 29$ 2$ 5$ 26$ Accounts receivable.................................................................... 1 - 1 -

TOTAL ASSETS................................................................... 30$ 2$ 6$ 26$

LIABILITIES

Accounts payable and accrued liabilities............................... 30$ -$ 4$ 26$

TOTAL LIABILITIES.......................................................... 30$ -$ 4$ 26$

(continued)

-213-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESFIDUCIARY FUNDS - ALL AGENCY FUNDS (in thousands; continued)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010



FLORIDA RETIREMENT SYSTEM

ASSETS

Equity in cash and investments............................................. 48$ 600$ 597$ 51$

TOTAL ASSETS................................................................... 48$ 600$ 597$ 51$

LIABILITIES

Accounts payable and accrued liabilities............................... 10$ -$ 5$ 5$ Due to independent agencies and other governments........... 38 590 582 46

TOTAL LIABILITIES.......................................................... 48$ 590$ 587$ 51$

SHERIFF'S AGENCY FUND

ASSETS

Equity in cash and investments............................................. 2,568$ 4,893$ 5,246$ 2,215$

TOTAL ASSETS................................................................... 2,568$ 4,893$ 5,246$ 2,215$

LIABILITIES

Due to independent agencies and other governments........... 38$ 266$ 294$ 10$ Deposits held in escrow......................................................... 1,958 834 1,397 1,395 Miscellaneous liabilities........................................................ 572 3,793 3,555 810


TOTALS - ALL AGENCY FUNDS

ASSETS

Equity in cash and investments............................................. 66,806$ 903,787$ 932,616$ 37,977$ Accounts receivable............................................................... 3,137 25 853 2,309

TOTAL ASSETS................................................................... 69,943$ 903,812$ 933,469$ 40,286$

LIABILITIES

Accounts payable and accrued liabilities............................... 227$ 194,353$ 194,390$ 190$ Due to independent agencies and other governments........... 28,273 856 13,004 16,125Due to individuals.................................................................. 4,627 741 56 5,312Deposits held in escrow......................................................... 36,244 42,028 60,423 17,849Miscellaneous liabilities........................................................ 572 3,793 3,555 810


(continued)

-214-

COMPONENT UNITS Component Units are legally separate organizations for which the primary government is financially accountable. Financial accountability is defined as appointment of a voting majority of the component unit's governing body with certain exceptions, and either (a) the ability to impose will by the primary government; or (b) the potential for the organization to provide financial benefits to, or impose financial burdens on the primary government. The City's non-major component units follow: NON-MAJOR COMPONENT UNITS:

The Downtown Vision, Inc. provides community enhancements, such as security, hospitality and clean teams, within the downtown area. The Water and Sewer Expansion Authority (WSEA) allows property owners an opportunity to finance water and/or sewer infrastructure in their existing developed neighborhoods on a voluntary basis.

COMPONENT UNITS THAT DO NOT ISSUE A SEPARATE REPORT:

The Jacksonville Housing Finance Authority provides money for loans and technical assistance for construction and rehabilitation of housing to alleviate a shortage of housing and capital for investment in housing in Jacksonville.

The Jacksonville Economic Development Commission provides a focal point for economic development in Jacksonville that results in a centralization of economic development programs.

-215-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF NET ASSETS -NON MAJOR COMPONENT UNITS (in thousands)SEPTEMBER 30, 2010

WATERAND SEWER

DOWNTOWN EXPANSION VISION, INC. AUTHORITY TOTAL

ASSETSCash and cash equivalents................................... $ 731 $ 902 $ 1,633Cash in escrow with fiscal agent......................... - - - Investments.......................................................... 106 106 Due from other governmental agencies............... - - - Accounts and interest receivable......................... 663 20 683 Mortgage receivables........................................... - - - Other receivables................................................. - 1,728 1,728 Other assets.......................................................... 7 - 7 Capital assets:

Equipment....................................................... 195 12,092 12,287 Less: accumulated depreciation...................... (154) (423) (577)

Total capital assets, net of depreciation...... 41 11,669 11,710 Total assets...................................................... 1,548 14,319 15,867

LIABILITIES Accounts payable and accrued expenses............. 33 54 87

Total liabilities................................................. 33 54 87

NET ASSETS Invested in capital assets, net of related debt...... 41 11,669 11,710 Unrestricted......................................................... 1,474 2,596 4,070

Total Net Assets.............................................. $ 1,515 $ 14,265 $ 15,780

-216-

CITY OF JACKSONVILLE, FLORIDACOMBINING STATEMENT OF ACTIVITIES -NON MAJOR COMPONENT UNITS (in thousands)FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

PROGRAM REVENUES GOVERNMENTAL ACTIVITIES

FINES AND WATER

CHARGES OPERATING CAPITAL AND SEWER

FOR GRANTS AND GRANTS AND DOWNTOWN EXPANSION

FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS VISION, INC. AUTHORITY TOTAL

Governmental activities: Downtown Vision, Inc $ 1,411 $ 989 $ - $ 312 $ (110) $ - $ (110)

Water Sewer Expansion Authority 874 719 - 2,463 2,308 2,308

Total component units.............................. $ 2,285 $ 1,708 $ - $ 2,775 (110) 2,308 2,198

General revenues:

Unrestricted earnings on investments.......................................................... 4 112 116 Miscellaneous.............................................................................................. 66 15 81

Total general revenues..................................................................................... 70 127 197

Change in net assets......................................................................................... (40) 2,435 2,395

Net assets, beginning of year........................................................................... 1,555 11,830 13,385

Net assets (deficit), end of year....................................................................... $ 1,515 $ 14,265 $ 15,780

-217-

CITY OF JACKSONVILLE, FLORIDABALANCE SHEET-COMPONENT UNIT JACKSONVILLE HOUSING FINANCE AUTHORITYSEPTEMBER 30, 2010 (in thousands)

JACKSONVILLEHOUSINGFINANCE

AUTHORITY

ASSETS:Equity in cash and investments.................................................................................... $ 7,882 Cash in escrow and with fiscal agents.......................................................................... 133 Receivables (net, where applicable, of

allowances for uncollectibles):Accounts and interest................................................................................... 5 Mortgages..................................................................................................... 11,883

Prepaid items................................................................................................................ 1,590

TOTAL ASSETS........................................................................................................ 21,493


LIABILITIES:Accounts payable and accrued liabilities..................................................................... 14 Loan payables............................................................................................................... 1,218

TOTAL LIABILITIES...................................................................................................... 1,232

FUND BALANCES:Non Spendable: Assigned:

Mortgages (Loan) receivable............................................................................ 11,888 Prepaid items..................................................................................................... 1,590

Spendable: Unassigned............................................................................................................. 6,783

TOTAL FUND BALANCES............................................................................................. 20,261

TOTAL LIABILITIES AND FUND BALANCES......................................................... $ 21,493

Compensated absences............................................................................................ (5) Other post employment benefits (OPEB) liability................................................... (3)

TOTAL NET ASSETS $ 20,253


Amounts reported for governmental activities in the statement of net assets are different because:

Certain assets and liabilities reported in governmental activities are not financial resources and therefore are not reported in the funds:

-218-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES - COMPONENT UNITS - JACKSONVILLE HOUSING FINANCE AUTHORITYFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 (in thousands)

JACKSONVILLEHOUSINGFINANCE

AUTHORITYREVENUE:

Interest......................................................................................................................... $ 565 Other............................................................................................................................ 584

Total Revenue................................................................................................................... 1,149


Economic environment........................................................................................... 494

Total Expenditures........................................................................................................... 494

EXCESS OF REVENUE OVER(UNDER) EXPENDITURES.................................................................................... 655

NET CHANGES IN FUND BALANCES............................................................... 655

FUND BALANCES, BEGINNING OF YEAR......................................................... 19,606

FUND BALANCES, END OF YEAR........................................................................... $ 20,261

Capital assets acquired by use of financial resources................................................... 5 Current year depreciation............................................................................................. (6)

Increases in compensated absences payable................................................................ (5) Increase in other post employment benefits liability.................................................... (2)

Change in Net Assets...................................................................................................... $ 647


Some revenues and expenses reported in the statement of activities did not require the use of or provide current financial resources and therefore are not reported in governmental funds:

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Also, certain capital assets are contributed to the City upon completion, requiring recognition of income not reported in the funds.

Amounts reported for governmental activities in the statement of activities are different because:

-219-

CITY OF JACKSONVILLE, FLORIDABALANCE SHEET-COMPONENT UNIT JACKSONVILLE ECONOMIC DEVELOPMENT COMMISSIONSEPTEMBER 30, 2010 (in thousands)

JACKSONVILLEECONOMIC

DEVELOPMENTCOMMISSION

ASSETS:Equity in cash and investments.................................................................................... $ 22,518 Cash in escrow and with fiscal agents.......................................................................... 20 Receivables (net, where applicable, of

allowances for uncollectible):Accounts and interest................................................................................... 1,392 Loans............................................................................................................ 42,567

Due from independent agencies and other governments.............................................. 64

TOTAL ASSETS........................................................................................................ 66,561


LIABILITIES:Accounts payable and accrued liabilities..................................................................... $ 980 Deposits........................................................................................................................ 387 Unearned revenue......................................................................................................... 42,567

TOTAL LIABILITIES...................................................................................................... 43,934

FUND BALANCES:Spendable: Unassigned............................................................................................................. 22,627

TOTAL FUND BALANCES............................................................................................. 22,627

TOTAL LIABILITIES AND FUND BALANCES......................................................... $ 66,561

1

Compensated absences............................................................................................ (256) Other post employment benefits (OPEB) liability................................................... (43)

TOTAL NET ASSETS $ 22,329


Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds

Certain assets and liabilities reported in governmental activities are not financial resources and therefore are not reported in the funds:

-220-

CITY OF JACKSONVILLE, FLORIDASTATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES - COMPONENT UNITS - JACKSONVILLE ECONOMIC DEVELOPMENT COMMISSIONFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 (in thousands)

JACKSONVILLEECONOMIC

DEVELOPMENTCOMMISSION

REVENUE:Intergovernmental.................................................................................................................. $ 12,689 Charges for services............................................................................................................... 2 Interest.................................................................................................................................... 2,084 Other....................................................................................................................................... 1,361

Total Revenue............................................................................................................................. 16,136


Culture and recreation................................................................................................... 18 Economic environment................................................................................................. 9,925 Physical environment.................................................................................................... 9,500

Total Expenditures...................................................................................................................... 19,443

EXCESS OF REVENUE OVER(UNDER) EXPENDITURES............................................................................................... (3,307)

NET CHANGES IN FUND BALANCES.......................................................................... (3,307)

FUND BALANCES, BEGINNING OF YEAR.................................................................... 25,934

FUND BALANCES, END OF YEAR...................................................................................... $ 22,627

Current year depreciation........................................................................................................ (7)

Increases in compensated absences payable........................................................................... (2) Increase in other post employment benefits liability............................................................... (13)

Change in Net Assets................................................................................................................. $ (3,329)


Some revenues and expenses reported in the statement of activities did not require the use of or provide current financial resources and therefore are not reported in governmental funds:

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Also, certain capital assets are contributed to the City upon completion, requiring recognition of income not reported in the funds.

Amounts reported for governmental activities in the statement of activities are different because:

-221-


-222-

SUPPLEMENTAL INFORMATION

The Supplemental Information provided herein contains schedules of the Debt Service Funds bonded indebtedness and debt service requirements detail, as well as Self Insurance Fund schedules detailing ten year trend information of general liability and workers compensation claims development.

-223-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF LONG-TERM BONDED INDEBTEDNESS (in thousands)SEPTEMBER 30, 2010

PAYMENT DATES

GOVERNMENTAL ACTIVITIES:Revenue Bonds Supported by General Funds:Excise Taxes Revenue Bonds, Series 1993....................................................................... 6.200 - 6.300% 4/1; 10/1

* Excise Taxes Revenue Refunding Bonds, Series 1995A.................................................. 5.000% 4/1; 10/1* Sales Tax Revenue Bonds, Series 1996............................................................................ 5.125% 4/1; 10/1* Excise Taxes Revenue Refunding and Capital Improvement Bonds, Series 1999A........ 4.000 - 5.000% 4/1; 10/1

Local Government Sales Tax Refunding Revenue Bonds, Series 2001........................... 4.200 - 5.500% 4/1; 10/1Excise Taxes Revenue Bonds, Series 2001B.................................................................... 4.300 - 5.125% 4/1; 10/1Excise Taxes Revenue Refunding and Improvement Bonds, Series 2002A..................... 5.250 - 5.500% 4/1; 10/1Guaranteed Entitlement Revenue Refunding and Improvement Bonds, Series 2002....... 3.750 - 5.375% 4/1; 10/1Excise Taxes Revenue Bonds, Series 2002B.................................................................... 3.300 - 5.375% 4/1; 10/1Local Government Sales Tax Refunding and Improvement Bonds, Series 2002............. 3.625 - 5.375% 4/1; 10/1Excise Taxes Revenue Bonds, Series 2003A.................................................................... 3.000 - 4.500% 4/1; 10/1

* Excise Taxes Revenue Refunding and Improvement Bonds, Series 2003B..................... 5.000% 4/1; 10/1Excise Taxes Revenue Refunding Bonds, Series 2003C (AMT)...................................... 3.250 - 5.250% 4/1; 10/1

* Excise Taxes Revenue Bonds, Series 2005A.................................................................... 3.500 - 5.000% 4/1; 10/1Excise Taxes Revenue Refunding Bonds, Series 2006A.................................................. 3.375 - 5.000% 4/1; 10/1Excise Taxes Revenue Refunding Bonds, Series 2006B (AMT)...................................... 3.625 - 4.000% 4/1; 10/1Excise Taxes Revenue Bonds, Taxable Series 2006C...................................................... 4.880 - 5.220% 4/1; 10/1Excise Taxes Revenue Bonds, Series 2007....................................................................... 4.000 - 5.000% 4/1; 10/1

* Capital Project Revenue Bonds, Series 2008A................................................................. 3.800% (a) Monthly* Capital Project Revenue Bonds, Series 2008B................................................................. 3.800% (a) Monthly

Excise Taxes Revenue Bonds, Series 2009A ................................................................... 2.500 - 5.000% 4/1; 10/1* Excise Taxes Revenue Refunding Bonds, Series 2009B.................................................. 2.500 - 5.000% 4/1; 10/1* Excise Taxes Revenue Refunding Bonds, Series 2009C (AMT)...................................... 2.500 - 5.000% 4/1; 10/1* Special Revenue Bonds, Series 2009C-1.......................................................................... 3.000 - 5.000% 4/1; 10/1* Special Revenue Bonds, Taxable Series 2009C-2 (Direct Pay Build America Bonds).... 4.240 - 4.990% (b) 4/1; 10/1* Special Revenue Bonds, Series 2010A............................................................................. 3.250 - 5.125% 4/1; 10/1

Total .....................................................................................................................

Notes Payable Supported by General Fund: U.S. Government Guaranteed Note Payable, Series 1995 (Coach).................................. 4.570 - 5.190% 2/1; 8/1U.S. Government Guaranteed Note Payable, Series 2010 (Sally Beauty)........................ 0.560 - 0.860% 2/1; 8/1U.S. Government Guaranteed Note Payable, Series 2010-B (Hilton).............................. 0.560 - 2.200% 2/1; 8/1U.S. Government Guaranteed Note Payable, Series 2010 (LaVilla)................................ 0.560 - 2.660% 2/1; 8/1U.S. Government Guaranteed Note Payable, Series 1997 (HTV Associates).................. 6.780% 2/1; 8/1U.S. Government Guaranteed Note Payable, Series 2010 (Armor Holdings).................. 0.560 - 2.660% 2/1; 8/1U.S. Government Guaranteed Note Payable, Series 2010 (Hampton Inns)...................... 0.560 - 2.200% 2/1; 8/1

Total .....................................................................................................................

* Indicates individual bond series that were issued in support of both Governmental Activities and Business-Like Activities.

The par amount of bonds allocated to the other activities was determined proprata based on the project funding at the time of closing.

(a) The above rates represent assumed rates on variable rate debt for coverage analysis or other purposes. (b) The taxable rates are subsidized under the Build America Bond program.

(1) Total authorization of $19,850,000 (6) Total authorization of $134,070,000 (10 Total authorization of $1,500,000,000

(2) Total authorization of $65,640,000 (7) Total authorization of $29,010,000 (11 Total authorization of $300,000,000



(5) Total authorization of $147,000,000

RATESINTEREST

-224-

FINALISSUE MATURITYDATE DATE AUTHORIZED ISSUED RETIRED

02/23/93 10/01/20 $ 43,605 $ 43,605 $ 36,250 $ 7,355 01/04/96 10/01/09 19,850 (1) 7,580 7,580 001/07/97 10/01/18 65,640 (2) 47,682 44,995 2,68703/09/99 10/01/19 75,890 (3) 75,834 75,834 004/24/01 10/01/18 127,000 103,725 30,435 73,29004/01/02 10/01/32 49,000 46,735 4,595 42,14007/03/02 10/01/13 65,000 56,685 37,520 19,16507/03/02 10/01/32 125,000 115,265 15,335 99,93011/26/02 10/01/26 90,300 68,475 12,940 55,53512/16/02 10/01/18 70,000 63,060 18,040 45,02012/29/03 10/01/23 18,745 18,745 2,085 16,66007/03/03 10/01/11 70,000 (4) 17,535 17,535 007/03/03 10/01/20 n/a (4) 34,540 2,020 32,52010/10/05 10/01/32 147,000 (5) 42,820 514 42,30612/29/06 10/01/23 n/a (5) 36,540 0 36,54012/29/06 10/01/23 n/a (5) 9,255 0 9,25512/29/06 10/01/23 n/a (5) 23,555 0 23,55509/19/07 10/01/32 n/a (5) 42,245 1,965 40,28007/01/08 10/01/34 67,285 (6) 67,035 1,647 65,38807/01/08 10/01/34 67,285 (6) 67,035 1,647 65,38809/30/09 10/01/34 n/a (5) 39,585 0 39,58509/30/09 10/01/19 29,010 (7) 18,535 0 18,53509/30/09 10/01/16 23,730 (8) 2,275 0 2,27512/15/09 10/01/27 275,786 (13) 30,170 0 30,170 12/15/09 10/01/22 n/a (13) 10,995 0 10,995 09/29/10 10/01/40 n/a (13) 48,000 0 48,000

$ 1,430,126 $ 1,137,511 $ 310,938 $ 826,574

02/01/95 08/01/14 $ 3,845 $ 3,845 $ 1,985 $ 1,860 12/18/96 08/01/12 1,065 1,065 905 160 11/20/96 08/01/15 2,850 2,850 1,430 1,420 02/19/97 08/01/16 1,700 1,700 1,015 685 04/02/97 08/01/10 700 700 700 0 10/28/97 08/01/16 775 775 335 440 10/28/97 08/01/15 550 550 270 280

$ 11,485 $ 11,485 $ 6,640 $ 4,845

OUTSTANDING

(continued)

-225-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF LONG-TERM BONDED INDEBTEDNESS (in thousands) (continued)SEPTEMBER 30, 2010

PAYMENT DATES

Special Revenue Bonds Payable from Internal Service Operations:Special Revenue Bonds, Series 2008................................................................................ 3.500 - 5.625% 4/1; 10/1Special Revenue Bonds, Series 2009A............................................................................. 5.000% (a) 4/1; 10/1

* Special Revenue Bonds, Series 2009C-1.......................................................................... 3.000 - 5.000% (b) 4/1; 10/1* Special Revenue Bonds, Taxable Series 2009C-2 (Direct Pay Build America Bonds).... 4.240 - 4.990% (b) 4/1; 10/1* Special Revenue Bonds, Series 2010A Bonds.................................................................. 3.250 - 5.000% 4/1; 10/1

Total .....................................................................................................................

Notes Payable from Internal Service Operations:Commercial Paper............................................................................................................. 3.250% Monthly

Total .....................................................................................................................

Revenue Bonds Supported by BJP Revenues: Transportation Revenue Bonds, Series 2001.................................................................... 4.400 - 5.500% 4/1; 10/1

* Better Jacksonville Sales Tax Revenue Bonds, Series 2001............................................. 4.300 - 5.500% 4/1; 10/1* Better Jacksonville Sales Tax Revenue Bonds, Series 2003............................................. 3.250 - 5.250% 4/1; 10/1* Better Jacksonville Sales Tax Revenue Bonds, Series 2004............................................. 2.500 - 5.000% 4/1; 10/1

Transportation Revenue Bonds, Series 2007.................................................................... 4.000 - 5.000% 4/1; 10/1Transportation Revenue Bonds, Series 2008A.................................................................. 4.340% (a) MonthlyTransportation Revenue Bonds, Series 2008B.................................................................. 3.430% (a) MonthlyBetter Jacksonville Sales Tax Revenue Bonds, Series 2008............................................. 4.000 - 5.000% 4/1; 10/1

Total .....................................................................................................................

Special Revenue Bonds Supported by BJP Revenues:Special Revenue Bonds, Series 2009B-1A....................................................................... 2.000 - 5.000% 4/1; 10/1Special Revenue Bonds, Taxable Series 2009B-1B (Direct Pay Build America Bonds). 6.259% (b) 4/1; 10/1Special Revenue Bonds, Series 2010B Bonds.................................................................. 5.000% 4/1; 10/1

Total .....................................................................................................................

Notes Payable Supported by BJP Revenues: State Infrastructure Bank Loan #1..................................................................................... 2.000% 10/1State Infrastructure Bank Loan #2..................................................................................... 2.500% 10/1

Total .....................................................................................................................

TOTAL GOVERNMENTAL ACTIVITIES ........................................................









INTERESTRATES

-226-


09/24/08 10/01/33 $ n/a (13) $ 54,215 $ 535 $ 53,680 09/15/09 10/01/21 n/a (13) 28,613 0 28,613 12/15/09 10/01/27 n/a (13) 40,160 0 40,160 12/15/09 10/01/22 n/a (13) 26,315 0 26,315 09/29/10 10/01/25 n/a (13) 46,945 0 46,945

$ 0 $ 196,248 $ 535 $ 195,713

11/04/04 12/31/34 $ 150,000 $ 137,125 $ 82,125 $ 55,000

$ 150,000 $ 137,125 $ 82,125 $ 55,000

06/05/01 10/01/31 $ 750,000 (9) $ 179,280 $ 14,980 $ 164,300 06/05/01 10/01/30 1,500,000 (10) 163,956 24,853 139,103 02/19/03 10/01/30 n/a (10) 158,416 22,406 136,010 03/02/04 10/01/30 n/a (10) 164,200 20,319 143,881 09/05/07 10/01/37 n/a (9) 100,675 5,660 95,015 04/25/08 10/01/32 n/a (9) 154,535 0 154,535 05/14/08 10/01/27 n/a (9) 121,740 8,645 113,095 09/16/08 10/01/30 n/a (10) 105,470 2,665 102,805

$ 2,250,000 $ 1,148,272 $ 99,528 $ 1,048,744

09/30/09 10/01/25 $ 300,000 (11) $ 52,090 $ 0 $ 52,090 09/30/09 10/01/30 n/a (11) 55,925 0 55,925 09/16/10 10/01/30 n/a (11) 100,205 0 100,205

$ 300,000 $ 208,220 $ 0 $ 208,220

07/28/05 10/01/14 $ 40,000 $ 40,000 $ 10,701 $ 29,299 03/13/07 10/01/21 50,000 46,909 10,336 36,573

$ 90,000 $ 86,909 $ 21,036 $ 65,872

$ 4,231,611 $ 2,925,770 $ 520,802 $ 2,404,968

(continued)

OUTSTANDING

-227-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF LONG-TERM BONDED INDEBTEDNESS (in thousands) (continued)SEPTEMBER 30, 2010

PAYMENT DATES

BUSINESS-TYPE ACTIVITIES:

Revenue Bonds Supported by Business-Type Activities: * Excise Taxes Revenue Refunding Bonds, Series 1995A.................................................. 5.125% 4/1; 10/1

Excise Taxes Revenue Refunding Bonds, Series 1996A.................................................. 5.550% 4/1; 10/1* Sales Tax Revenue Bonds, Series 1996............................................................................ 5.125% 4/1; 10/1

Capital Improvement Revenue Bonds, Series 1997.......................................................... 5.000 - 5.250% 4/1; 10/1Capital Improvement and Revenue Refunding Bonds, Series 1998................................. 4.500 - 5.000% 4/1; 10/1

* Excise Taxes Revenue Refunding and Capital Improvement Bonds, Series 1999A........ 5.000% 4/1; 10/1Excise Taxes Revenue Refunding and Capital Improvement Bonds, Series 1999B........ 5.750% 4/1; 10/1

* Better Jacksonville Sales Tax Revenue Bonds, Series 2001............................................. 4.300 - 5.500% 4/1; 10/1Capital Improvement Revenue Bonds, Series 2002A....................................................... 3.500 - 5.000% 4/1; 10/1Capital Improvement and Refunding Revenue Bonds, Crossover Series 2002B............. 5.000 - 5.250% 4/1; 10/1Capital Improvement and Refunding Revenue Bonds, Crossover Series 2002C............. 3.500 - 5.250% 4/1; 10/1

* Better Jacksonville Sales Tax Revenue Bonds, Series 2003............................................. 3.250 - 5.250% 4/1; 10/1* Excise Taxes Revenue Refunding and Improvement Bonds, Series 2003B..................... 5.000% 4/1; 10/1* Better Jacksonville Sales Tax Revenue Bonds, Series 2004............................................. 2.500 - 5.000% 4/1; 10/1* Excise Taxes Revenue Bonds, Series 2005A.................................................................... 3.500 - 5.000% 4/1; 10/1* Capital Project Revenue Bonds, Series 2008A................................................................. 3.800% (a) Monthly* Capital Project Revenue Bonds, Series 2008B................................................................. 3.800% (a) Monthly* Excise Taxes Revenue Refunding Bonds, Series 2009B.................................................. 2.500 - 5.000% 4/1; 10/1* Excise Taxes Revenue Refunding Bonds, Series 2009C (AMT)...................................... 2.500 - 5.000% 4/1; 10/1

TOTAL BUSINESS-LIKE ACTIVITIES ...........................................................

TOTAL BONDED INDEBTEDNESS .............................................................









INTERESTRATES

-228-


01/04/96 10/01/09 n/a (1) $ 12,270 $ 12,270 $ 0 02/28/96 10/01/16 19,965 19,965 19,965 001/07/97 10/01/18 n/a (2) 17,958 16,946 1,01203/11/97 10/01/25 8,285 8,285 2,275 6,01008/26/98 10/01/25 37,310 37,310 2,530 34,78003/09/99 10/01/19 n/a (3) 56 56 009/23/99 10/01/16 40,835 40,835 40,835 006/05/01 10/01/30 n/a (10) 54,474 8,257 46,21709/09/02 10/01/30 130,000 (12) 54,135 2,115 52,02009/09/02 10/01/19 n/a (12) 42,170 9,540 32,63009/09/02 10/01/25 n/a (12) 26,920 3,385 23,53502/19/03 10/01/30 n/a (10) 52,634 7,444 45,19007/03/03 10/01/11 n/a (4) 9,530 6,980 2,55003/02/04 10/01/30 n/a (10) 54,555 6,750 47,80510/10/05 10/01/32 n/a (5) 2,000 0 2,00007/01/08 10/01/34 n/a (6a) 250 18 23207/01/08 10/01/34 n/a (6b) 250 18 23209/30/09 10/01/19 n/a (7) 10,475 0 10,47509/30/09 10/01/16 n/a (8) 21,455 0 21,455

$ 236,395 $ 465,527 $ 139,383 $ 326,143

$ 4,468,006 $ 3,391,297 $ 660,185 $ 2,731,111

OUTSTANDING

(continued)

-229-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS

COMPARED TO CASH IN SINKING FUNDLONG-TERM OBLIGATIONS

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010

PRINCIPAL OUTSTANDING

GOVERNMENTAL ACTIVITIES:

Revenue Bonds Supported by General Funds:Excise Taxes Revenue Bonds, Series 1993........................................................................ $ 7,354,675

* Sales Taxes Revenue Bonds, Series 1996.......................................................................... 2,687,717

Local Government Sales Tax Refunding Revenue Bonds, Series 2001............................. 73,290,000

Excise Taxes Revenue Bonds, Series 2001B..................................................................... 42,140,000

Excise Taxes Revenue Refunding and Improvement Bonds, Series 2002A...................... 19,165,000

Guaranteed Entitlement Revenue Refunding and Improvement Bonds, Series 2002........ 99,930,000

Excise Taxes Revenue Bonds, Series 2002B..................................................................... 55,535,000

Local Government Sales Tax Refunding and Improvement Bonds, Series 2002.............. 45,020,000

Excise Taxes Revenue Bonds, Series 2003A..................................................................... 16,660,000

Excise Taxes Revenue Refunding Bonds, Series 2003C (AMT)....................................... 32,520,000

* Excise Taxes Revenue Bonds, Series 2005A..................................................................... 42,302,904

Excise Taxes Revenue Refunding Bonds, Series 2006A................................................... 36,540,000

Excise Taxes Revenue Refunding Bonds, Series 2006B (AMT)....................................... 9,255,000

Excise Taxes Revenue Bonds, Taxable Series 2006C........................................................ 23,555,000

Excise Taxes Revenue Bonds, Series 2007........................................................................ 40,280,000

* Capital Project Revenue Bonds, Series 2008A................................................................... 65,387,565

* Capital Project Revenue Bonds, Series 2008B................................................................... 65,387,565

Excise Taxes Revenue Bonds, Series 2009A .................................................................... 39,585,000

* Excise Taxes Revenue Refunding Bonds, Series 2009B.................................................... 18,535,000

* Excise Taxes Revenue Refunding Bonds, Series 2009C (AMT)....................................... 2,275,000

* Special Revenue Bonds, Series 2009C-1............................................................................ 30,170,000

* Special Revenue Bonds, Taxable Series 2009C-2 (Direct Pay Build America Bonds)..... 10,995,000

* Special Revenue Bonds, Series 2010A............................................................................... 48,000,000

Total...................................................................................................................... $ 826,570,426

Notes Payable Supported by General Funds:U.S. Government Guaranteed Note Payable, Series 1995 (Coach).................................... $ 1,860,000

U.S. Government Guaranteed Note Payable, Series 1996 (Sally Beauty)......................... 160,000

U.S. Government Guaranteed Note Payable, Series 1996-B (Hilton)................................ 1,420,000

U.S. Government Guaranteed Note Payable, Series 1997 (LaVilla).................................. 685,000

U.S. Government Guaranteed Note Payable, Series 1997 (Armor Holdings).................... 440,000

U.S. Government Guaranteed Note Payable, Series 1997 (Hampton Inns)....................... 280,000

Total...................................................................................................................... $ 4,845,000

Special Revenue Bonds Payable from Internal Service Operations:Special Revenue Bonds, Series 2008.................................................................................. $ 53,680,000

Special Revenue Bonds, Series 2009A............................................................................... 28,613,000

* Special Revenue Bonds, Series 2009C-1............................................................................ 40,160,000

* Special Revenue Bonds, Taxable Series 2009C-2 (Direct Pay Build America Bonds)..... 26,315,000

* Special Revenue Bonds, Series 2010A............................................................................... 46,945,000

Total...................................................................................................................... $ 195,713,000

Notes Payable from Internal Service Operations:Commercial Paper.............................................................................................................. $ 55,000,000

Total...................................................................................................................... $ 55,000,000

-230-

TOTALTOTAL DEBT SERVICE CASH IN CASH IN

INTEREST REQUIREMENTS SINKING DEBT SERVICE NETTO MATURITY TO MATURITY FUND RESERVE FUND DEBT

10,065,671.00

$ 18,450,323 $ 25,804,998 $ 3,374,711 $ 175,350 $ 22,254,937

972,595 3,660,312 50,671 374 3,609,267

17,264,906 90,554,906 10,365,433 0 80,189,473

29,240,754 71,380,754 2,286,507 1,004,701 68,089,546

1,708,331 20,873,331 7,119,154 456,932 13,297,245

68,940,669 168,870,669 5,040,951 0 163,829,718

25,898,599 81,433,599 3,731,386 1,324,065 76,378,149

12,804,900 57,824,900 4,009,342 0 53,815,558

5,307,025 21,967,025 1,377,853 397,207 20,191,965

14,776,525 47,296,525 616,260 775,341 45,904,924

29,915,791 72,218,695 7,611,607 1,008,585 63,598,502

25,409,953 61,949,953 928,304 871,186 60,150,463

1,327,681 10,582,681 197,281 220,658 10,164,743

7,051,431 30,606,431 630,523 561,598 29,414,310

25,914,063 66,194,063 2,165,013 960,355 63,068,694

42,934,458 108,322,023 1,576,165 0 106,745,858

42,934,458 108,322,023 1,576,165 0 106,745,858

26,363,184 65,948,184 2,158,385 943,785 62,846,014

4,795,843 23,330,843 1,916,807 441,911 20,972,124

252,063 2,527,063 450,503 54,241 2,022,319

11,495,775 41,665,775 1,455,499 0 40,210,276

2,809,193 13,804,193 216,605 0 13,587,588

44,325,564 92,325,564 0 3,868,168 88,457,395

$ 460,894,082 $ 1,287,464,508 $ 58,855,126 $ 13,064,458 $ 1,215,544,925

$ 242,140 $ 2,102,140 $ 82,110 $ 0 $ 2,020,030

1,856 161,856 15,985 0 145,871

73,137 1,493,137 54,270 0 1,438,867

51,011 736,011 74,083 0 661,928

31,998 471,998 11,840 0 460,158

15,265 295,265 0 0 295,265

$ 415,406 $ 5,260,406 $ 238,288 $ 0 $ 5,022,118

$ 26,223,442 $ 79,903,442 $ 3,852,530 $ 4,325,901 $ 71,725,010

9,756,902 38,369,902 1,378,485 2,305,831 34,685,586

14,089,188 54,249,188 2,968,382 3,236,367 48,044,438

7,046,346 33,361,346 561,130 2,120,643 30,679,573

22,500,062 69,445,062 0 3,783,149 65,661,913

$ 79,615,940 $ 275,328,940 $ 8,760,527 $ 15,771,892 $ 250,796,521

$ 2,189,499 $ 57,189,499 $ 19,526,453 $ 0 $ 37,663,046

$ 2,189,499 $ 57,189,499 $ 19,526,453 $ 0 $ 37,663,046

(continued)

-231-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS

COMPARED TO CASH IN SINKING FUNDLONG-TERM OBLIGATIONS (continued)

FOR THE FISCAL YEAR ENDED

PRINCIPAL OUTSTANDING

Revenue Bonds Supported by BJP Revenues:Transportation Revenue Bonds, Series 2001...................................................................... $ 164,300,000

* Better Jacksonville Sales Tax Revenue Bonds, Series 2001.............................................. 139,102,956



Transportation Revenue Bonds, Series 2007...................................................................... 95,015,000

Transportation Revenue Bonds, Series 2008A................................................................... 154,535,000

Transportation Revenue Bonds, Series 2008B................................................................... 113,095,000

Better Jacksonville Sales Tax Revenue Bonds, Series 2008.............................................. 102,805,000

Total...................................................................................................................... $ 1,048,743,984

Special Revenue Bonds Supported by BJP Revenues:Special Revenue Bonds, Series 2009B-1A......................................................................... $ 52,090,000

Special Revenue Bonds, Taxable Series 2009B-1B (Direct Pay Build America Bonds).. 55,925,000

Special Revenue Bonds, Series 2010B............................................................................... 100,205,000

Total...................................................................................................................... $ 208,220,000

Notes Payable Supported by BJP Revenues:State Infrastructure Bank Loan........................................................................................... $ 29,299,456

State Infrastructure Bank Loan........................................................................................... 36,572,492

Total...................................................................................................................... $ 65,871,949

TOTAL GOVERNMENTAL ACTIVITIES ....................................................... $ 2,404,964,358

BUSINESS-LIKE ACTIVITIES:

Revenue Bonds Supported by Business-Type Activities:* Sales Taxes Revenue Bonds, Series 1996.......................................................................... $ 1,012,283

Capital Improvement Revenue Bonds, Series 1997........................................................... 6,010,000

Capital Improvement and Revenue Refunding Bonds, Series 1998................................... 34,780,000


Capital Improvement Revenue Bonds, Series 2002A........................................................ 52,020,000

Capital Improvement and Refunding Revenue Bonds, Crossover Series 2002B............... 32,630,000

Capital Improvement and Refunding Revenue Bonds, Crossover Series 2002C............... 23,535,000


* Excise Taxes Revenue Refunding and Improvement Bonds, Series 2003B...................... 2,550,000


* Excise Taxes Revenue Bonds, Series 2005A..................................................................... 2,000,000

* Capital Project Revenue Bonds, Series 2008A................................................................... 232,435

* Capital Project Revenue Bonds, Series 2008B................................................................... 232,435

* Excise Taxes Revenue Refunding Bonds, Series 2009B.................................................... 10,475,000

* Excise Taxes Revenue Refunding Bonds, Series 2009C (AMT)....................................... 21,455,000

TOTAL BUSINESS-LIKE ACTIVITIES ........................................................... $ 326,143,169

TOTAL BONDED INDEBTEDNESS................................................................. $ 2,731,107,528

-232-

TOTALTOTAL DEBT SERVICE CASH IN CASH IN

INTEREST REQUIREMENTS SINKING DEBT SERVICE NETTO MATURITY TO MATURITY FUND RESERVE FUND DEBT

$ 142,605,073 $ 306,905,073 $ 3,851,866 $ 16,289,653 $ 286,763,554

95,398,688 234,501,644 8,059,822 11,916,675 214,525,148

87,086,849 223,097,293 7,819,867 11,651,745 203,625,681

78,630,756 222,511,341 7,767,278 12,325,965 202,418,098

82,829,500 177,844,500 3,593,139 9,420,337 164,831,024

92,924,766 247,459,766 2,860,860 0 244,598,906

38,652,723 151,747,723 4,111,717 0 147,636,006

61,954,463 164,759,463 6,029,431 8,807,101 149,922,931

$ 680,082,817 $ 1,728,826,801 $ 44,093,978 $ 70,411,475 $ 1,614,321,348

$ 27,917,641 $ 80,007,641 $ 1,973 $ 5,155,712 $ 74,849,956

42,273,106 98,198,106 1,855 5,535,288 92,660,963

70,357,260 170,562,260 2,213 9,917,990 160,642,058

$ 140,548,007 $ 348,768,007 $ 6,041 $ 20,608,990 $ 328,152,976

$ 4,268,987 $ 33,568,444 $ 2,200,472 $ 0 $ 31,367,972

7,052,769 43,625,262 3,594,514 0 40,030,747

$ 11,321,757 $ 77,193,705 $ 5,794,986 $ 0 $ 71,398,719

$ 1,375,067,507 $ 3,780,031,865 $ 137,275,398 $ 119,856,814 $ 3,522,899,652

$ 366,311 $ 1,378,594 $ 19,084 $ 141 $ 1,359,369

2,859,934 8,869,934 2,912 0 8,867,022

20,554,241 55,334,241 35,322 0 55,298,919

30,217,759 76,434,804 2,456,484 3,959,323 70,018,997

46,986,028 99,006,028 82,464 6,439,070 92,484,493

9,266,531 41,896,531 108,454 0 41,788,077

10,497,899 34,032,899 57,610 0 33,975,289

28,934,661 74,124,218 2,383,351 3,871,300 67,869,567

129,000 2,679,000 480,403 60,797 2,137,800

26,125,119 73,929,534 2,367,322 4,095,310 67,466,903

1,640,391 3,640,391 70,502 47,684 3,522,204

65,065 297,500 3,574 0 293,927

65,065 297,500 3,574 0 293,927

1,934,483 12,409,483 2,046,410 249,745 10,113,328

3,113,750 24,568,750 3,555,669 511,530 20,501,551

$ 182,756,237 $ 508,899,406 $ 13,673,135 $ 19,234,899 $ 475,991,373

$ 1,557,823,744 $ 4,288,931,271 $ 150,948,533 $ 139,091,713 $ 3,998,891,025

(continued)

-233-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -GOVERNMENTAL ACTIVITIESREVENUE BONDS SUPPORTED BY GENERAL FUNDSEPTEMBER 30, 2010

Purpose: Development of Third River City To Refund a PortionTerminal for Operation by the Renaissance of Sales Tax Revenue Bonds,

Jacksonville Port Authority Projects Series 1995 and 1996

Excise Taxes Local Government Sales TaxRevenue Bonds, Sales Tax Revenue Refunding Revenue Bonds,

Series 1993 Bonds, Series 1996 Series 2001FiscalYear Principal Interest Principal Interest Principal Interest

2011 $ 1,076,112 $ 2,103,888 $ 137,746 $ 8,230,000 $ 3,751,130 2012 1,061,197 2,273,803 137,746 8,580,000 3,342,350 2013 1,352,429 3,167,570 137,746 9,050,000 2,857,525 2014 1,313,363 3,401,636 137,746 9,545,000 2,346,162 2015 1,288,056 3,631,944 137,746 10,075,000 1,806,613 2016 1,263,518 3,871,482 $ 624,713 121,737 6,405,000 1,353,413 2017 653,769 88,976 6,760,000 991,375 2018 686,457 54,633 7,125,000 609,538 2019 722,778 18,521 7,520,000 206,800 2020202120222023202420252026202720282029203020312032203320342035203620372038203920402041

$ 7,354,675 $ 18,450,323 $ 2,687,717 $ 972,595 $ 73,290,000 $ 17,264,906

Interest Rates 6.200% - 6.300% 5.125% 4.200% - 5.500%

-234-

(continued)

To Fund a Redevelopment To Refund Excise To Refund Guaranteed To Fund a Grant toAgreement for the Taxes Revenue Refunding Entitlement Revenue Refunding Shands Jacksonville

Riverfront Development Bonds, Series 1992 and Bonds, Series 1992A and Medical Center, Incof the Jacksonville Shipyards Animal Care and Control Facility Various Other Projects

Excise Taxes Revenue Guaranteed Entitlement Revenue Excise TaxesExcise Taxes Revenue Refunding and Improvement Refunding and Improvement Revenue BondsBonds, Series 2001B Bonds, Series 2002A Bonds, Series 2002 Series 2002B

Principal Interest Principal Interest Principal Interest Principal Interest

$ 1,035,000 $ 2,091,277 $ 6,465,000 $ 868,206 $ 2,485,000 $ 4,918,206 $ 2,325,000 $ 2,636,204 1,080,000 2,045,265 6,805,000 511,362 2,580,000 4,821,625 2,400,000 2,549,841 1,130,000 1,996,080 2,865,000 245,438 2,680,000 4,718,038 2,495,000 2,451,941 1,180,000 1,943,515 3,030,000 83,325 2,785,000 4,608,737 2,595,000 2,346,898 1,235,000 1,887,353 2,895,000 4,493,328 2,705,000 2,230,891 1,290,000 1,827,370 3,015,000 4,352,591 2,825,000 2,106,466 1,355,000 1,763,212 3,180,000 4,186,100 2,955,000 1,965,238 1,420,000 1,694,515 3,350,000 4,010,606 3,110,000 1,804,638 1,490,000 1,621,765 3,530,000 3,825,706 3,275,000 1,634,629 1,565,000 1,544,608 3,720,000 3,630,863 3,450,000 1,454,835 1,645,000 1,462,547 3,920,000 3,425,537 3,635,000 1,264,426 1,730,000 1,376,062 4,130,000 3,216,938 3,830,000 1,076,730 1,815,000 1,285,222 4,335,000 3,005,312 4,010,000 891,488 1,910,000 1,189,769 4,555,000 2,783,063 4,200,000 691,250 2,010,000 1,089,319 4,780,000 2,549,687 4,410,000 476,000 2,110,000 983,744 5,020,000 2,304,688 4,630,000 250,000 2,220,000 872,787 5,270,000 2,047,438 2,685,000 67,125 2,335,000 756,066 5,535,000 1,777,313 2,450,000 633,450 5,810,000 1,491,375 2,580,000 504,556 6,105,000 1,188,506 2,710,000 369,000 6,415,000 869,756 2,850,000 226,525 6,745,000 534,206 2,995,000 76,747 7,090,000 181,050

$ 42,140,000 $ 29,240,754 $ 19,165,000 $ 1,708,331 $ 99,930,000 $ 68,940,669 $ 55,535,000 $ 25,898,599

4.300% - 5.125% 5.250% - 5.500% 3.750% - 5.375% 3.300% - 5.375%

-235-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -GOVERNMENTAL ACTIVITIESREVENUE BONDS SUPPORTED BY GENERAL FUND (continued)SEPTEMBER 30, 2010

To Refund CommercialPurpose: Paper Notes and to Fund To Fund City-Wide To Refund Excise Taxes

Veterans Memorial Capital Improvement Revenue Bonds,Wall Plaza and Library Projects Series 1993 (AMT)Systems Improvements

Local GovernmentSales Tax Refunding Excise Taxes Excise Taxes Revenue

and Improvement Revenue Bonds Refunding Bonds,Revenue Bonds, Series 2002 Series 2003A Series 2003C (AMT)

FiscalYear Principal Interest Principal Interest Principal Interest

2011 $ 2,850,000 $ 2,150,994 $ 935,000 $ 646,095 $ 15,000 $ 1,705,713 2012 2,950,000 2,041,806 960,000 616,470 15,000 1,705,150 2013 3,065,000 1,922,975 990,000 583,545 20,000 1,704,450 2014 3,195,000 1,797,775 1,025,000 547,770 20,000 1,703,638 2015 3,315,000 1,652,013 1,065,000 509,618 20,000 1,702,813 2016 6,845,000 1,387,803 1,105,000 468,920 20,000 1,701,963 2017 7,210,000 1,015,438 1,145,000 425,598 5,380,000 1,560,300 2018 7,595,000 624,403 1,190,000 379,470 5,895,000 1,264,331 2019 7,995,000 211,694 1,235,000 330,353 6,445,000 940,406 2020 1,285,000 278,050 7,030,000 586,688 2021 1,340,000 222,590 7,660,000 201,075 2022 1,400,000 163,490 2023 1,460,000 100,745 2024 1,525,000 34,313 20252026202720282029203020312032203320342035203620372038203920402041

$ 45,020,000 $ 12,804,900 $ 16,660,000 $ 5,307,025 $ 32,520,000 $ 14,776,525

Interest Rates 3.625% - 5.375% 3.000% - 4.500% 3.500% - 5.250%

-236-

(continued)

To Fund City-Wide To Refund the Sunshine State To Refund the Sunshine State To Fund the RenovationCaptial Improvements and Governmental Finance CommissionGovernmental Finance Commission of the Carling, Ed Ball and

River City Marketplace Bonds, Series 1995A Bonds, Series 1995B (AMT) Laura Street Trio, and Road and Utility Improvements and various Capital Improvements Dredging of Privately

Owned Canals

Excise Taxes Excise Taxes Excise Taxes Excise TaxesRevenue Bonds Revenue Refunding Bonds Revenue Refunding Bonds Revenue BondsSeries 2005A Series 2006A Series 2006B (AMT) Taxable Series 2006C


$ 525,000 $ 1,959,359 $ 1,693,644 $ 360,038 $ 1,199,585 545,000 1,940,293 $ 1,370,000 1,670,525 $ 1,490,000 333,031 $ 2,135,000 1,147,491 565,000 1,919,822 1,420,000 1,622,556 1,830,000 271,713 2,240,000 1,039,733 585,000 1,898,259 1,465,000 1,571,153 1,895,000 199,500 2,350,000 924,849 605,000 1,875,190 1,520,000 1,516,100 1,975,000 122,100 2,470,000 803,138 630,000 1,850,490 1,575,000 1,456,100 2,065,000 41,300 2,590,000 674,990 655,000 1,824,790 1,424,600 2,725,000 539,574 685,000 1,797,562 1,424,600 2,865,000 395,753 710,000 1,768,347 1,424,600 3,010,000 243,584 740,000 1,737,534 1,424,600 3,170,000 82,737

2,420,278 1,670,378 1,660,000 1,383,100 2,525,403 1,555,812 1,740,000 1,298,100 2,649,553 1,426,438 1,830,000 1,208,850 2,783,053 1,290,623 1,920,000 1,115,100 2,921,553 1,157,108 2,015,000 1,016,725 3,050,379 1,016,969 2,115,000 913,475 3,203,229 860,629 2,225,000 810,538 3,360,754 704,932 2,325,000 708,163 2,398,279 574,364 2,430,000 601,175 2,505,804 460,447 2,535,000 483,125 2,622,680 341,851 2,665,000 353,125 2,744,230 212,596 2,795,000 216,625 2,876,257 71,995 2,935,000 73,375

$ 42,306,452 $ 29,915,791 $ 36,540,000 $ 25,409,953 $ 9,255,000 $ 1,327,681 $ 23,555,000 $ 7,051,431

3.500% - 5.000% 3.375% - 5.000% 3.625% - 4.000% 4.880% - 5.220%(Taxable)

-237-


Purpose: To Fund City-Wide To Paritally Refund the To Paritally Refund the Capital Improvements Capital Projects Revenue Bonds, Capital Projects Revenue Bonds,

Series 1997-1, 1997-2, 1997-3 Series 1997-1, 1997-2, 1997-3and 2002-1 and 2002-1

Excise Taxes Capital Projects Capital ProjectsRevenue Bonds Revenue Refunding Bonds Revenue Refunding Bonds

Taxable Series 2007 Series 2008A Series 2008BFiscalYear Principal Interest Principal Interest Principal Interest

2011 $ 1,060,000 $ 1,836,525 $ 1,399,780 $ 2,907,630 $ 1,399,780 $ 2,907,630 2012 1,105,000 1,793,225 1,713,609 2,838,815 1,713,609 2,838,815 2013 1,145,000 1,751,088 1,300,151 2,770,546 1,300,151 2,770,546 2014 1,190,000 1,707,250 1,613,981 2,698,498 1,613,981 2,698,498 2015 1,235,000 1,658,750 1,688,702 2,622,171 1,688,702 2,622,171 2016 1,285,000 1,608,350 1,773,386 2,548,997 1,773,386 2,548,997 2017 1,335,000 1,555,950 2,067,290 2,449,355 2,067,290 2,449,355 2018 1,390,000 1,501,450 1,952,718 2,360,347 1,952,718 2,360,347 2019 1,445,000 1,444,750 1,843,126 2,276,329 1,843,126 2,276,329 2020 1,505,000 1,385,750 2,142,012 2,186,234 2,142,012 2,186,234 2021 1,560,000 1,316,650 2,241,640 2,078,956 2,241,640 2,078,956 2022 1,640,000 1,236,650 2,356,213 1,972,497 2,356,213 1,972,497 2023 1,720,000 1,152,650 2,630,191 1,854,203 2,630,191 1,854,203 2024 1,810,000 1,064,400 2,585,358 1,741,495 2,585,358 1,741,495 2025 1,900,000 971,650 2,565,432 1,620,305 2,565,432 1,620,305 2026 1,995,000 874,275 2,844,392 1,492,313 2,844,392 1,492,313 2027 2,095,000 772,025 2,978,891 1,357,681 2,978,891 1,357,681 2028 2,200,000 664,650 3,123,352 1,219,839 3,123,352 1,219,839 2029 2,310,000 557,675 3,367,441 1,064,684 3,367,441 1,064,684 2030 2,410,000 451,475 3,347,516 912,756 3,347,516 912,756 2031 2,520,000 334,250 3,601,568 750,323 3,601,568 750,323 2032 2,645,000 205,125 3,775,918 581,235 3,775,918 581,235 2033 2,780,000 69,500 3,960,231 400,721 3,960,231 400,721 2034 4,169,450 212,360 4,169,450 212,360 2035 4,345,216 16,169 4,345,216 16,169 203620372038203920402041

$ 40,280,000 $ 25,914,063 $ 65,387,565 $ 42,934,458 $ 65,387,565 $ 42,934,458

Variable Rate Variable RateInterest Rates 4.000% - 5.000% Assumed at 3.80% Assumed at 3.80%

-238-

(continued)

To Fund City-Wide To Refund the Excise Taxes To Refund the Excise Taxes To Fund the AcquisitionCapital Improvements Revenue Bonds, Series 1996A and Revenue Bonds, Series 1999B and Construction of Various

the Excise Taxes Revenue Capital Improvement ProjectsBonds, Series 1999A

Excise Taxes Excise Taxes Excise TaxesRevenue Bonds Revenue Refunding Bonds Revenue Refunding Bonds Special Revenue BondsSeries 2009A Series 2009B Series 2009C (AMT) Series 2009C-1


$ 1,000,000 $ 1,665,561 $ 1,575,000 $ 792,218 $ 485,000 $ 71,363 $ 955,000 $ 1,237,425 1,020,000 1,637,761 1,595,000 762,800 420,000 59,000 1,165,000 1,205,625 1,050,000 1,606,711 1,640,000 711,950 365,000 47,225 3,020,000 1,127,750 1,080,000 1,574,761 1,695,000 643,875 295,000 35,075 3,115,000 1,005,050 1,115,000 1,541,836 1,780,000 557,000 275,000 22,900 3,220,000 862,250 1,150,000 1,507,861 1,865,000 465,875 240,000 12,600 3,360,000 697,750 1,170,000 1,473,061 1,965,000 370,125 195,000 3,900 613,750 1,215,000 1,436,071 2,035,000 270,125 613,750 1,255,000 1,395,453 2,140,000 165,750 613,750 1,300,000 1,350,025 2,245,000 56,125 613,750 1,345,000 1,293,869 613,750 1,410,000 1,229,213 613,750 1,460,000 1,159,963 2,840,000 561,450 1,550,000 1,087,288 2,925,000 459,475 1,620,000 1,018,713 3,005,000 356,425 1,685,000 945,609 3,090,000 225,800 1,765,000 863,219 3,475,000 74,275 1,835,000 782,538 1,910,000 696,966 2,005,000 601,763 2,115,000 502,906 2,220,000 399,950 2,325,000 292,006 2,435,000 178,956 2,550,000 121,125

$ 39,585,000 $ 26,363,184 $ 18,535,000 $ 4,795,843 $ 2,275,000 $ 252,063 $ 30,170,000 $ 11,495,775

2.500% - 5.000% 2.500% - 5.000% 2.500% - 5.000% 3.000% - 5.000%(Taxable)

-239-


Purpose: To Fund the Acquisition To Fund the Acquisitionand Construction of Various and Construction of Various

Capital Improvement Projects Capital Improvement Projects

Special Revenue BondsTaxable Series 2009C-2 Special Revenue Bonds

(Direct Pay Build America Bonds) Series 2010A TotalFiscal PrincipalYear Principal Interest Principal Interest and Interest

2011 $ 326,273 $ 1,184,804 $ 72,967,182 2012 326,273 2,343,569 79,646,056 2013 326,273 $ 943,000 2,319,994 78,536,943 2014 326,273 970,000 2,272,169 79,028,735 2015 326,273 998,000 2,222,969 75,973,626 2016 326,273 1,026,000 2,172,369 75,829,701 2017 $ 3,780,000 274,184 1,059,000 2,120,244 72,752,474 2018 1,375,000 202,255 1,097,000 2,066,344 69,809,631 2019 1,420,000 161,231 1,136,000 2,010,519 69,585,544 2020 1,450,000 117,710 1,175,000 1,952,744 53,507,509 2021 1,475,000 71,932 1,219,000 1,892,894 51,339,217 2022 1,495,000 24,245 1,263,000 1,830,844 43,442,656 2023 1,312,000 1,766,469 44,958,926 2024 1,367,000 1,711,455 44,625,494 2025 1,428,000 1,665,144 42,761,799 2026 1,494,000 1,614,901 42,992,250 2027 1,566,000 1,549,606 41,095,014 2028 1,643,000 1,469,381 34,783,178 2029 1,726,000 1,385,156 33,838,691 2030 1,814,000 1,296,656 33,461,875 2031 1,909,000 1,203,581 33,634,931 2032 1,820,000 1,110,356 33,438,920 2033 1,910,000 1,017,106 33,414,940 2034 2,005,000 919,231 14,301,808 2035 2,105,000 816,481 14,315,377 2036 2,210,000 708,606 2,918,606 2037 2,320,000 595,356 2,915,356 2038 2,435,000 474,959 2,909,959 2039 2,560,000 346,963 2,906,963 2040 2,680,000 212,688 2,892,688 2041 2,810,000 72,006 2,882,006

$ 10,995,000 $ 2,809,193 $ 48,000,000 $ 44,325,564 $ 1,287,464,508

Interest Rates 4.240% - 4.990% 3.250% - 5.125%(2.756% - 3.244% net of subsidy)

(Taxable)

-240-


-241-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -GOVERNMENTAL ACTIVITIESNOTES PAYABLE SUPPORTED BY GENERAL FUNDSEPTEMBER 30, 2010

Purpose: HUD Section 108 HUD Section 108 HUD Section 108Program Loan for Program Loan for Program Loan for

Coach Distribution Project Sally Beauty Project Hilton Hotel Project

U.S. Government U.S. Government U.S. Government Guaranteed Note Guaranteed Note Guaranteed Note

Payable, Series 1995 Payable, Series 2010 Payable, Series 2010FiscalYear Principal Interest Principal Interest Principal Interest

2011 $ 420,000 $ 93,258 $ 80,000 $ 1,168 $ 250,000 $ 20,266 2012 455,000 73,140 80,000 688 275,000 18,318 2013 500,000 50,572 295,000 15,953 2014 485,000 25,172 300,000 12,000 2015 300,000 6,600 2016

$ 1,860,000 $ 242,140 $ 160,000 $ 1,856 $ 1,420,000 $ 73,137

Interest Rates 4.790% - 5.190% 0.560% - 0.860% 0.560% - 2.200%

(Taxable) (Taxable) (Taxable)

-242-

(continued)

HUD Section 108 HUD Section 108 HUD Section 108Program Loan for Program Loan for Program Loan for

LaVilla Project Armor Holdings Hampton Inns

U.S. Government U.S. Government U.S. Government Guaranteed Note Guaranteed Note Guaranteed Note

Payable, Series 2010 Payable, Series 2010 Payable, Series 2010 TotalPrincipal

Principal Interest Principal Interest Principal Interest And Interest

$ 90,000 $ 11,723 $ 60,000 $ 7,429 $ 45,000 $ 4,131 $ 1,082,973 100,000 10,902 65,000 6,892 50,000 3,767 1,138,707 110,000 10,042 75,000 6,333 55,000 3,337 1,121,237 125,000 8,568 80,000 5,328 65,000 2,600 1,108,668 130,000 6,318 80,000 3,888 65,000 1,430 593,236 130,000 3,458 80,000 2,128 215,586

$ 685,000 $ 51,011 $ 440,000 $ 31,998 $ 280,000 $ 15,265 $ 5,260,406

0.560% - 2.660% 0.560% - 2.660% 0.560% - 2.200%

(Taxable) (Taxable) (Taxable)

-243-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -GOVERNMENTAL ACTIVITIESSPECIAL REVENUE BONDS AND NOTES PAYABLE FROM INTERNAL SERVICE OPERATIONSSEPTEMBER 30, 2010

Purpose To Fund the To Fund the Acquisition To Refund a PortionBanking Fund Program and Construction of Various of the Ash Settlement and

Capital Improvement Projects Fund Improvements tothe Ed Ball Building

Special Revenue Bonds Special Revenue BondsCommercial Paper Series 2008 Taxable Series 2009A


2011 $ 0 $ 41,792 $ 2,595,000 $ 2,357,964 $ 959,000 $ 1,440,435 2012 26,726,429 919,670 2,685,000 2,265,564 1,501,000 1,377,459 2013 13,015,000 761,813 2,775,000 2,170,014 2,206,000 1,282,560 2014 9,795,000 362,638 2,880,000 2,071,051 2,316,000 1,166,797 2015 5,062,857 102,625 2,975,000 1,964,870 2,430,000 1,045,299 2016 400,714 963 3,085,000 1,847,389 2,560,000 917,555 2017 3,210,000 1,721,489 2,680,000 783,411 2018 3,340,000 1,588,401 2,810,000 642,867 2019 3,480,000 1,432,514 2,950,000 495,411 2020 3,655,000 1,263,276 3,102,000 340,480 2021 3,815,000 1,095,201 2,480,000 197,581 2022 3,990,000 914,601 2,619,000 67,046 2023 940,000 796,339 2024 990,000 748,089 2025 1,040,000 696,819 2026 1,090,000 641,959 2027 1,145,000 583,563 2028 1,210,000 520,231 2029 1,275,000 451,894 2030 1,345,000 379,844 2031 1,420,000 303,806 2032 1,495,000 223,644 2033 1,580,000 138,094 2034 1,665,000 46,828

$ 55,000,000 $ 2,189,499 $ 53,680,000 $ 26,223,442 $ 28,613,000 $ 9,756,902

Interest Rates: Variable Rate 3.500% - 5.625% Variable RateAssumed at 3.25% Assumed at 5.00%

(Taxable)

-244-

(continued)

To Fund the Acquisition To Fund the Acquisition To Fund the Acquisitionand Construction of Various and Construction of Various and Construction of Various

Capital Improvement Projects Capital Improvement Projects Capital Improvement Projects

Special Revenue BondsSpecial Revenue Bonds Taxable Series 2009C-2 Special Revenue Bonds

Series 2009C-1 (Direct Pay Build America Bonds) Series 2010A TotalPrincipal

Principal Interest Principal Interest Principal Interest And Interest

$ 2,590,000 $ 1,592,325 $ 790,609 $ 1,146,530 $ 13,513,655 3,200,000 1,505,475 790,609 2,267,863 43,239,067 3,680,000 1,383,875 790,609 $ 2,372,000 2,208,563 32,645,432 3,845,000 1,233,375 790,609 2,515,000 2,086,388 29,061,857 4,020,000 1,055,975 790,609 2,662,000 1,956,963 24,066,197 4,240,000 849,475 790,609 2,814,000 1,820,063 19,325,767

743,475 $ 4,200,000 732,733 2,976,000 1,675,313 18,722,420 743,475 6,825,000 576,372 3,138,000 1,522,463 21,186,578 743,475 3,625,000 423,811 3,309,000 1,361,288 17,820,499 743,475 3,750,000 311,967 3,145,000 1,199,938 17,511,135 743,475 3,885,000 192,455 3,321,000 1,038,288 16,768,000 743,475 4,030,000 65,357 3,507,000 867,588 16,804,067

3,455,000 679,875 3,693,000 687,588 10,251,801 3,605,000 555,050 1,593,000 569,376 8,060,515 3,750,000 427,225 1,632,000 515,950 8,061,994 3,905,000 263,000 1,666,000 459,255 8,025,214 3,870,000 82,688 1,559,000 391,125 7,631,375

1,637,000 311,225 3,678,456 1,714,000 227,450 3,668,344 1,801,000 139,575 3,665,419 1,891,000 47,275 3,662,081

1,718,644 1,718,094 1,711,828

$ 40,160,000 $ 14,089,188 $ 26,315,000 $ 7,046,346 $ 46,945,000 $ 22,500,062 $ 332,518,439

3.000% - 5.000% 4.240% - 4.990% 3.250% - 5.000%(2.756% - 3.244% net of subsidy)

(Taxable)

-245-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -GOVERNMENTAL ACTIVITIESREVENUE BONDS SUPPORTED BY BJP REVENUESSEPTEMBER 30, 2010

Purpose: Better Jacksonville Better Jacksonville Better JacksonvilleTransportation Infrastructure Infrastructure

Projects Projects Projects

Transportation Better Jacksonville Better JacksonvilleRevenue Bonds Sales Tax Revenue Bonds Sales Tax Revenue Bonds

Series 2001 Series 2001 Series 2003FiscalYear Principal Interest Principal Interest Principal Interest

2011 $ 8,337,740 $ 3,531,618 $ 7,035,499 $ 3,719,270 $ 6,533,245 2012 $ 9,080,000 8,120,129 3,681,740 6,867,525 3,839,368 6,405,618 2013 7,902,519 3,865,639 6,669,177 3,974,477 6,263,908 2014 7,902,519 4,079,563 6,450,684 4,120,846 6,111,090 2015 7,902,519 4,304,746 6,220,115 4,278,474 5,947,225 2016 7,902,519 4,541,188 5,976,852 4,451,114 5,744,813 2017 7,902,519 4,788,889 5,721,213 4,683,803 5,505,022 2018 7,902,519 5,051,602 5,451,538 4,927,751 5,252,718 2019 7,902,519 5,329,328 5,166,062 5,186,712 5,001,020 2020 7,902,519 5,622,065 4,873,332 5,434,413 4,736,022 2021 7,902,519 5,914,803 4,573,374 5,719,644 4,443,228 2022 3,415,000 7,815,009 6,222,553 4,264,025 6,016,135 4,135,164 2023 3,625,000 7,636,875 6,534,056 3,945,110 6,335,144 3,818,862 2024 10,980,000 7,271,750 6,860,571 3,610,244 6,650,400 3,495,997 2025 11,520,000 6,709,250 7,205,851 3,258,584 6,980,668 3,156,993 2026 12,090,000 6,119,000 7,566,144 2,889,284 7,329,702 2,799,537 2027 12,685,000 5,499,625 7,941,449 2,501,594 7,693,748 2,424,670 2028 13,315,000 4,832,981 8,339,272 2,094,576 8,076,558 2,031,177 2029 20,260,000 3,951,638 8,755,860 1,667,198 8,481,887 1,617,564 2030 21,325,000 2,860,031 9,194,967 1,218,427 8,905,982 1,182,867 2031 22,440,000 1,739,250 19,771,056 4,944,276 19,204,344 480,109 2032 23,565,000 589,125 203320342035203620372038

$ 164,300,000 $ 142,605,073 $ 139,102,956 $ 95,398,688 $ 136,010,444 $ 87,086,849

Interest Rates 4.400% - 5.500% 4.300% - 5.500% 3.250% - 5.250%

-246-

(continued)

Better Jacksonville Better Jacksonville To Refund theInfrastructure Transportation Transportation Revenue Bonds,

Projects Projects Series 2003A & Series 2003B(Auction Rate Securities)

Better JacksonvilleSales Tax Revenue Bonds Transportation Revenue Bonds Transportation Revenue Bonds

Series 2004 Series 2007 Series 2008A

Principal Interest Principal Interest Principal Interest

$ 4,349,782 $ 5,833,784 $ 3,170,000 $ 4,607,700 $ 6,192,612 4,462,374 5,718,054 3,300,000 4,461,800 $ 2,700,000 6,109,979 4,582,471 5,587,959 3,465,000 4,310,000 6,084,416 4,721,334 5,442,501 3,600,000 4,150,700 1,350,000 6,034,765 4,875,209 5,283,510 3,780,000 3,966,200 11,250,000 5,616,555 5,036,590 5,113,100 3,970,000 3,772,450 11,875,000 5,156,735 5,216,736 4,930,407 4,170,000 3,568,950 11,450,000 4,682,522 5,408,142 4,727,691 3,464,700 4,644,810 5,622,065 4,507,086 3,464,700 4,644,810 5,847,248 4,277,700 3,464,700 4,657,535 6,079,937 4,039,156 3,464,700 4,644,810 6,327,638 3,787,050 3,464,700 4,644,810 6,582,845 3,516,657 3,464,700 4,644,810 6,864,324 3,230,905 3,464,700 4,657,535 7,153,309 2,924,088 3,464,700 10,460,000 4,260,102 7,476,071 2,590,255 3,464,700 11,005,000 3,820,899 7,825,104 2,236,415 4,375,000 3,355,325 11,560,000 3,359,488 8,189,150 1,866,086 4,595,000 3,131,075 12,155,000 2,882,131 8,564,455 1,484,011 4,825,000 2,895,575 12,770,000 2,364,665 8,947,265 1,089,998 5,065,000 2,648,325 13,430,000 1,828,664

19,748,536 444,342 5,320,000 2,395,350 14,110,000 1,265,480 5,575,000 2,129,625 14,830,000 675,287 5,850,000 1,844,000 15,590,000 51,348 6,145,000 1,544,125 6,450,000 1,229,250 6,775,000 898,625 7,115,000 551,375 7,470,000 186,750

$ 143,880,584 $ 78,630,756 $ 95,015,000 $ 82,829,500 $ 154,535,000 $ 92,924,766

Variable Rate2.500% - 4.625% 4.000% - 5.000% Assumed at 4.34%

-247-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -GOVERNMENTAL ACTIVITIESREVENUE BONDS SUPPORTED BY BJP REVENUES (continued)SEPTEMBER 30, 2010

Purpose: To Refund the Better JacksonvilleTransportation Revenue Bonds, Infrastructure

Series 2003 & Series 2004A Projects(Auction Rate Securities)

Better JacksonvilleTransportation Revenue Bonds Sales Tax Revenue Bonds

Series 2008B Series 2008 TotalFiscal PrincipalYear Principal Interest Principal Interest and Interest

2011 $ 4,535,000 $ 4,365,213 $ 2,985,000 $ 4,920,100 $ 70,116,563 2012 5,160,000 4,171,849 3,105,000 4,798,300 81,981,736 2013 4,680,000 3,971,377 3,230,000 4,671,600 69,258,543 2014 5,615,000 3,749,449 3,355,000 4,539,900 71,223,349 2015 5,695,000 3,521,499 3,490,000 4,385,550 80,516,601 2016 5,955,000 3,292,666 3,665,000 4,206,675 80,659,702 2017 8,915,000 2,936,226 3,850,000 4,018,800 82,340,086 2018 8,990,000 2,576,221 4,040,000 3,821,550 66,259,241 2019 9,285,000 2,205,118 4,245,000 3,614,425 66,173,846 2020 9,310,000 1,837,061 4,455,000 3,396,925 65,814,521 2021 9,730,000 1,443,603 4,680,000 3,168,550 65,804,324 2022 4,430,000 1,248,625 4,915,000 2,928,675 63,614,385 2023 4,695,000 1,061,357 5,160,000 2,676,800 63,697,216 2024 4,780,000 872,431 5,415,000 2,412,425 70,566,282 2025 4,965,000 671,740 5,685,000 2,134,925 80,550,210 2026 5,210,000 463,768 5,970,000 1,843,550 80,637,909 2027 5,460,000 245,796 6,270,000 1,537,550 84,970,764 2028 5,685,000 18,724 6,585,000 1,224,406 85,021,137 2029 6,895,000 904,256 85,437,108 2030 7,225,000 559,875 85,481,401 2031 7,585,000 189,625 119,637,368 2032 47,364,037 2033 23,335,348 2034 7,689,125 2035 7,679,250 2036 7,673,625 2037 7,666,375 2038 7,656,750

$ 113,095,000 $ 38,652,723 $ 102,805,000 $ 61,954,463 $ 1,728,826,801

Variable RateInterest Rates: Assumed at 3.43% 4.000% - 5.000%

Hedges Fixed at3.455% and 4.010%

-248-


-249-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -GOVERNMENTAL ACTIVITIESSPECIAL REVENUE BONDS SUPPORTED BY BJP REVENUESSEPTEMBER 30, 2010

Purpose: Better Jacksonville Better JacksonvilleRoad and Infrastructure Road and Infrastructure

Projects Projects

Special Revenue BondsSpecial Revenue Bonds Series 2009B-1B

Series 2009B-1A (Direct Pay Build America Bonds)FiscalYear Principal Interest Principal Interest

2011 $ 2,420,019 $ 2,275,225 2012 $ 1,000,000 2,410,019 2,275,225 2013 1,500,000 2,377,519 2,275,225 2014 1,875,000 2,313,769 2,275,225 2015 1,950,000 2,223,769 2,275,225 2016 2,050,000 2,124,719 2,275,225 2017 2,155,000 2,031,319 2,275,225 2018 2,240,000 1,954,619 2,275,225 2019 2,305,000 1,863,394 2,275,225 2020 2,420,000 1,745,269 2,275,225 2021 2,545,000 1,633,869 2,275,225 2022 2,640,000 1,516,969 2,275,225 2023 4,600,000 1,335,969 2,275,225 2024 7,005,000 1,046,219 2,275,225 2025 7,980,000 677,969 2,275,225 2026 9,825,000 242,234 2,275,225 2027 $ 10,310,000 2,065,501 2028 10,730,000 1,637,511 2029 11,170,000 1,192,027 2030 11,620,000 728,438 2031 12,095,000 246,033

$ 52,090,000 $ 27,917,641 $ 55,925,000 $ 42,273,106

Interest Rates: 2.000% - 5.000% 6.259%(4.068% net of subsidy)

(Taxable)

-250-

(continued)

Better JacksonvilleRoad and Infrastructure

Projects

Special Revenue BondsSeries 2010B Total

PrincipalPrincipal Interest and Interest

$ 2,713,885 $ 7,409,129 5,010,250 10,695,493 5,010,250 11,162,993 5,010,250 11,474,243 5,010,250 11,459,243 5,010,250 11,460,193 5,010,250 11,471,793 5,010,250 11,480,093

$ 7,705,000 4,817,625 18,966,243 7,705,000 4,432,375 18,577,868 7,705,000 4,047,125 18,206,218 7,705,000 3,661,875 17,799,068 7,705,000 3,276,625 19,192,818 7,710,000 2,891,250 20,927,693 7,710,000 2,505,750 21,148,943 7,710,000 2,120,250 22,172,709 7,710,000 1,734,750 21,820,251 7,710,000 1,349,250 21,426,761 7,710,000 963,750 21,035,777 7,710,000 578,250 20,636,688 7,710,000 192,750 20,243,783

$ 100,205,000 $ 70,357,260 $ 348,768,007

5.000%

-251-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -GOVERNMENTAL ACTIVITIESNOTES PAYABLE SUPPORTED BY BJP REVENUESSEPTEMBER 30, 2010

Purpose Better Jacksonville Better JacksonvilleInfrastructure Infrastructure

Projects Projects

State Infrastructure Bank State Infrastructure BankLoan #1; Dated 7/28/05 Loan #2; Dated 3/13/07 Total

Fiscal PrincipalYear Principal Interest Principal Interest And Interest

2011 $ 2,061,666 $ 387,034 $ 3,088,859 $ 911,141 $ 6,448,700 2012 1,902,544 544,756 3,085,688 914,312 6,447,300 2013 1,938,495 506,705 3,162,909 837,091 6,445,200 2014 1,979,465 467,935 3,162,766 837,234 6,447,400 2015 2,020,454 428,346 3,241,839 758,161 6,448,800 2016 2,056,463 387,937 3,320,908 679,092 6,444,400 2017 2,097,493 346,807 3,401,954 598,046 6,444,300 2018 2,143,542 304,858 3,484,976 515,024 6,448,400 2019 2,184,613 261,987 3,570,025 429,975 6,446,600 2020 2,225,706 218,294 3,657,150 342,850 6,444,000 2021 2,271,820 173,780 3,395,420 229,841 6,070,862 2022 2,317,956 128,344 2,446,300 2023 2,364,115 81,985 2,446,100 2024 1,735,123 30,220 1,765,344

$ 29,299,456 $ 4,268,987 $ 36,572,492 $ 7,052,769 $ 77,193,705

Interest Rates: 2.000% 2.500%

-252-


-253-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -PAYABLE FROM ENTERPRISE FUNDSSEPTEMBER 30, 2010

Purpose River City Superstructure To Refund a PortionRenaissance Renovation of the of Capital Improvement

Projects Everbank Stadium Revenue Bonds, Series 1994

Capital ImprovementSales Tax Revenue Capital Improvement and Refunding RevenueBonds, Series 1996 Revenue Bonds, Series 1997 Bonds, Series 1998


2011 $ 51,880 $ 250,000 $ 307,833 $ 205,000 $ 1,649,890

2012 51,880 265,000 294,825 215,000 1,640,332

2013 51,880 275,000 280,986 225,000 1,630,100

2014 51,880 290,000 266,365 235,000 1,619,231

2015 51,880 305,000 250,819 245,000 1,607,525

2016 $ 235,287 45,850 320,000 234,412 260,000 1,594,900

2017 246,231 33,511 340,000 217,087 270,000 1,581,650

2018 258,543 20,577 355,000 198,844 285,000 1,567,775

2019 272,222 6,976 375,000 179,681 300,000 1,553,150

2020 395,000 159,469 315,000 1,538,169

2021 415,000 138,206 5,035,000 1,411,106

2022 435,000 115,894 5,330,000 1,164,937

2023 460,000 92,400 5,640,000 904,400

2024 485,000 67,594 5,970,000 628,663

2025 510,000 41,475 5,640,000 352,925

2026 535,000 14,044 4,610,000 109,488

2027

2028

2029

2030

2031

2032

2033

2034

2035

$ 1,012,283 $ 366,311 $ 6,010,000 $ 2,859,934 $ 34,780,000 $ 20,554,241

Interest Rates: 5.125% 5.000% - 5.250% 4.500% - 5.000%

-254-

(continued)

Better Jacksonville Capital Improvements To Crossover Refund To Crossover RefundInfrastructure at Everbank Stadium Capital Improvement Revenue Capital Improvement Revenue

Projects Bonds, Series 1994 Bonds, Series 1995

Better Jacksonville Capital Improvement Capital Improvement and Capital Improvement andSales Tax Revenue Bonds Revenue Bonds, Refunding Revenue Bonds, Refunding Revenue Bonds,

Series 2001 Series 2002A Crossover Series 2002B Crossover Series 2002C


$ 1,173,382 $ 2,337,549 $ 395,000 $ 2,575,203 $ 2,310,000 $ 1,596,313 $ 980,000 $ 1,094,993

1,223,260 2,281,740 335,000 2,562,260 2,465,000 1,476,938 1,045,000 1,059,033

1,284,361 2,215,838 290,000 2,550,865 2,630,000 1,349,563 1,105,000 1,019,780

1,355,437 2,143,244 220,000 2,541,100 2,810,000 1,210,050 1,175,000 975,838

1,430,254 2,066,637 155,000 2,533,600 3,005,000 1,057,406 1,250,000 927,338

1,508,812 1,985,813 75,000 2,529,000 3,210,000 894,263 1,335,000 867,294

1,591,111 1,900,877 2,527,500 3,685,000 717,875 1,425,000 796,625

1,678,398 1,811,277 2,527,500 3,920,000 527,750 1,440,000 725,000

1,770,672 1,716,428 2,527,500 4,165,000 325,625 1,460,000 652,500

1,867,935 1,619,168 2,527,500 4,430,000 110,750 1,485,000 578,875

1,965,197 1,519,506 2,527,500 1,505,000 504,125

2,067,447 1,416,725 2,527,500 1,520,000 428,500

2,170,944 1,310,765 2,527,500 1,540,000 352,000

2,279,429 1,199,506 2,527,500 1,555,000 274,625

2,394,149 1,082,666 2,527,500 2,245,000 179,625

2,513,856 959,966 945,000 2,503,875 2,470,000 61,750

2,638,551 831,156 8,975,000 2,255,875

2,770,728 695,924 9,425,000 1,795,875

2,909,140 553,927 9,900,000 1,312,750

3,055,033 404,823 10,395,000 805,375

6,568,944 164,224 10,910,000 272,750

$ 46,217,044 $ 30,217,759 $ 52,020,000 $ 46,986,028 $ 32,630,000 $ 9,266,531 $ 23,535,000 $ 10,497,899

4.300% - 5.000% 3.500% - 5.000% 5.000% - 5.250% 3.500% - 5.250%

-255-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -PAYABLE FROM ENTERPRISE FUNDS (continued)SEPTEMBER 30, 2010

Purpose Better Jacksonville To Partially Refund Better JacksonvilleInfrastructure Excise Taxes Revenue Refunding Infrastructure

Projects Bonds, Series 1993A Projects

Better Jacksonville Excise Taxes Revenue Better JacksonvilleSales Tax Revenue Bonds Refunding and Improvement Sales Tax Revenue Bonds

Series 2003 Bonds, Series 2003B Series 2004FiscalYear Principal Interest Principal Interest Principal Interest

2011 $ 1,235,730 $ 2,170,675 $ 1,245,000 $ 96,375 $ 1,445,218 $ 1,938,278

2012 1,275,632 2,128,271 1,305,000 32,625 1,482,626 1,899,827

2013 1,320,523 2,081,187 1,522,529 1,856,603

2014 1,369,154 2,030,414 1,568,666 1,808,274

2015 1,421,526 1,975,969 1,619,791 1,755,450

2016 1,478,886 1,908,718 1,673,410 1,698,831

2017 1,556,197 1,829,047 1,733,264 1,638,131

2018 1,637,249 1,745,219 1,796,858 1,570,778

2019 1,723,288 1,661,592 1,867,935 1,497,482

2020 1,805,587 1,573,546 1,942,752 1,421,269

2021 1,900,356 1,476,265 2,020,063 1,342,012

2022 1,998,865 1,373,911 2,102,362 1,258,250

2023 2,104,856 1,268,819 2,187,155 1,168,412

2024 2,209,600 1,161,547 2,280,676 1,073,470

2025 2,319,332 1,048,913 2,376,691 971,530

2026 2,435,298 930,148 2,483,929 860,614

2027 2,556,253 805,598 2,599,896 743,050

2028 2,683,442 674,860 2,720,850 620,008

2029 2,818,113 537,437 2,845,545 493,064

2030 2,959,018 393,008 2,972,735 362,152

2031 6,380,656 159,516 6,561,464 147,633

2032

2033

2034

2035

$ 45,189,556 $ 28,934,661 $ 2,550,000 $ 129,000 $ 47,804,416 $ 26,125,119

Interest Rates 3.250% - 5.250% 5.000% 2.500% - 5.000%

-256-

(continued)

To Fund City-Wide To Paritally Refund the To Paritally Refund the To Refund the Excise TaxesCaptial Improvements and Capital Projects Revenue Bonds, Capital Projects Revenue Bonds, Revenue Bonds, Series 1996A

River City Marketplace Series 1997-1, 1997-2, 1997-3 Series 1997-1, 1997-2, 1997-3 and the Excise Taxes RevenueRoad and Utility Improvements and 2002-1 and 2002-1 Bonds, Series 1999A

Excise Taxes Capital Projects Capital Projects Excise TaxesRevenue Bonds Revenue Refunding Bonds Revenue Refunding Bonds Revenue Refunding BondsSeries 2005A Series 2008A Series 2008B Series 2009B


$ 95,516 $ 5,220 $ 4,546 $ 5,220 $ 4,546 $ 1,285,000 $ 490,983

95,516 6,391 4,422 6,391 4,422 1,350,000 425,750

95,516 4,849 4,320 4,849 4,320 1,420,000 356,500

95,516 6,019 4,203 6,019 4,203 1,490,000 283,750

95,516 6,298 4,078 6,298 4,078 1,565,000 207,375

95,516 6,614 3,947 6,614 3,947 1,645,000 127,125

95,516 7,710 3,796 7,710 3,796 1,720,000 43,000

95,516 7,282 3,649 7,282 3,649

95,516 6,874 3,511 6,874 3,511

95,516 7,988 3,354 7,988 3,354

$ 114,722 93,078 8,360 3,189 8,360 3,189

119,597 87,650 8,787 3,014 8,787 3,014

125,447 81,524 9,809 2,821 9,809 2,821

131,947 75,089 9,642 2,628 9,642 2,628

138,447 68,792 9,568 2,436 9,568 2,436

144,621 62,118 10,608 2,228 10,608 2,228

151,771 54,708 11,109 2,007 11,109 2,007

159,246 47,331 11,648 1,776 11,648 1,776

166,721 39,383 12,559 1,528 12,559 1,528

174,196 32,009 12,484 1,278 12,484 1,278

182,320 23,764 13,432 1,013 13,432 1,013

190,770 14,779 14,082 733 14,082 733

200,195 5,005 14,769 440 14,769 440

15,550 132 15,550 132

4,784 16 4,784 16

$ 2,000,000 $ 1,640,391 $ 232,435 $ 65,065 $ 232,435 $ 65,065 $ 10,475,000 $ 1,934,483

3.500% - 5.000% Assumed at 3.80% Assumed at 3.80% 2.500% - 5.000%

Variable Rate Variable Rate

-257-

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY -PAYABLE FROM ENTERPRISE FUNDS (continued)SEPTEMBER 30, 2010

Purpose To Refund the Excise TaxesRevenue Bonds, Series 1999B

Excise TaxesRevenue Refunding Bonds

Series 2009C (AMT) TotalFiscal PrincipalYear Principal Interest and Interest

2011 $ 2,590,000 $ 746,825 $ 28,286,173

2012 2,730,000 673,500 28,335,639

2013 2,880,000 589,350 27,048,917

2014 3,050,000 477,175 27,086,538

2015 3,220,000 343,800 27,110,638

2016 3,400,000 211,400 27,355,638

2017 3,585,000 71,700 27,627,334

2018 22,183,147

2019 22,171,336

2020 21,888,221

2021 21,990,234

2022 21,970,241

2023 21,959,483

2024 21,944,186

2025 21,921,053

2026 21,665,379

2027 21,638,092

2028 21,620,113

2029 21,604,252

2030 21,580,874

2031 31,400,160

2032 235,179

2033 235,618

2034 31,362

2035 9,600

$ 21,455,000 $ 3,113,750 $ 508,899,406

Interest Rates 2.500% - 5.000%

-258-


-259-

2001 2002 2003 2004 2005

Revenue $ 15,486 $ 16,225 $ 15,543 $ 17,658 $ 23,797Interest Revenue 2,725 2,854 1,349 1,437 1,782Total Revenue $ 18,211 $ 19,079 $ 16,892 $ 19,095 $ 25,579

Unallocated Expenses $ 1,387 $ 1,705 $ 1,712 $ 1,934 $ 1,962

Estimated Incurred Claims and Expense, End of Policy Year $ 10,882 $ 11,180 $ 11,725 $ 10,766 $ 12,824

Paid (Cumulative) as of: End of Policy Year $ 2,122 $ 2,758 $ 2,938 $ 2,335 $ 3,186 One Year Later 4,455 5,568 5,644 3,945 5,098 Two Years Later 5,649 7,028 7,122 4,405 5,893 Three Years Later 6,697 8,039 7,675 4,790 6,490 Four Years Later 7,666 8,421 8,085 527 6,808 Five Years Later 8,099 8,811 8,566 5,623 7,008 Six Years Later 8,391 9,230 9,608 5,903 Seven Years Later 8,647 9,609 10,560 Eight Years Later 8,965 10,184 Nine Years Later 9,573Reestimated incurred Claims and Expense: End of Policy Year $ 10,882 $ 11,180 $ 11,725 $ 10,766 $ 12,824 One Year Later 10,685 11,668 13,459 9,701 11,609 Two Years Later 11,075 12,356 13,162 8,482 11,537 Three Years Later 11,707 11,988 12,543 8,423 11,397 Four Years Later 11,824 12,560 13,906 8,734 11,693 Five Years Later 11,651 12,656 13,858 9,804 10,758 Six Years Later 12,376 12,946 14,286 9,395 Seven Years Later 12,516 12,750 14,322 Eight Years Later 12,761 12,610 Nine Years Later 12,709 Increase (Decrease) in Estimated Incurred Claims and Expense from End of Policy Year $ 1,827 $ 1,430 $ 2,597 $ (1,371) $ (2,066)

Available Funding $ 18,211 $ 19,079 $ 16,892 $ 19,095 $ 25,579Current Reestimated Incurred Claims and Expense (12,709) (12,610) (14,322) (9,395) (10,758)Excess (Deficit) Funding $ 5,502 $ 6,469 $ 2,570 $ 9,700 $ 14,821

For the Year Ended September 30

TEN YEAR CLAIMS DEVELOPMENT INFORMATION (in thousands)WORKERS COMPENSATION

CITY OF JACKSONVILLE, FLORIDASCHEDULE OF SELF-INSURANCE FUND

-260-

2006 2007 2008 2009 2010

$ 21,723 $ 25,140 $ 22,124 $ 17,692 $ 19,3692,095 2,807 1,404 5,753 4,218

$ 23,818 $ 27,947 $ 23,528 $ 23,445 $ 23,587

$ 1,898 $ 1,896 $ 2,113 $ 2,267 $ 2,062

$ 11,799 $ 10,451 $ 13,091 $ 13,418 $ 13,251

$ 2,339 $ 1,916 $ 2,742 $ 2,923 $ 3,2014,219 4,003 5,163 6,2074,756 4,576 6,1815,059 4,9765,407

$ 11,799 $ 10,451 $ 13,091 $ 13,418 $ 13,25110626 10,523 12,684 12,9819,941 9,531 12,8099,088 8,4388,816

$ (2,983) $ (2,013) $ (282) $ (437) $ 0

$ 23,818 $ 27,947 $ 23,528 $ 23,445 $ 23,587

(8,816) (8,438) (12,809) (12,981) (13,251)$ 15,002 $ 19,509 $ 10,719 $ 10,464 $ 10,336

Total Excess (Deficit) Funding of Reestimated Incurred Claims - 10 Years Shown. $ 105,092

continued


-261-

2001 2002 2003 2004 2005

Revenue $ 5,217 $ 5,473 $ 5,541 $ 6,748 $ 7,880Interest Revenue 933 1,025 547 592 601Total Revenue $ 6,150 $ 6,498 $ 6,088 $ 7,340 $ 8,481

Unallocated Expenses $ 1,567 $ 1,549 $ 1,461 $ 1,422 $ 1,562

Estimated Incurred Claims and Expense, End of Policy Year $ 4,096 $ 3,619 $ 2,989 3,587 5,186

Paid (Cumulative) as of: End of Policy Year $ 968 $ 984 $ 720 $ 737 $ 1,166 One Year Later 1,359 1,249 956 1,318 2,024 Two Years Later 1,943 1,672 1,808 2,349 3,344 Three Years Later 2,394 2,306 2,276 2,741 3,821 Four Years Later 3,145 2,631 2,410 2,929 4,093 Five Years Later 3,209 2,829 2,795 2,970 4,378 Six Years Later 3,023 2,859 2,889 2,988 Seven Years Later 3,042 2,862 2,889 Eight Years Later 3,043 2,862 Nine Years Later 3,049Reestimated incurred Claims and Expense: End of Policy Year $ 4,096 $ 3,619 $ 2,989 $ 3,587 $ 5,186 One Year Later 3,337 3,055 2,826 3,568 5,487 Two Years Later 3,414 2,912 3,128 3,533 5,261 Three Years Later 3,466 3,100 2,834 3,430 5,005 Four Years Later 3,388 3,011 2,777 3,198 4,893 Five Years Later 3,112 2,913 3,011 3,009 4,663 Six Years Later 3,060 2,865 2,956 3,000 Seven Years Later 3,045 2,869 2,920 Eight Years Later 3,047 2,873 Nine Years Later 3,049Increase (Decrease) in Estimated Incurred Claims and Expense from End of Policy Year $ (1,047) $ (746) $ (69) $ (587) (523)

Available Funding $ 6,150 $ 6,498 $ 6,088 $ 7,340 $ 8,481Current Reestimated Incurred Claims and Expense (3,049) (2,873) (2,920) (3,000) (4,663)Excess (Deficit) Funding $ 3,101 $ 3,625 $ 3,168 $ 4,340 $ 3,818

GENERAL LIABILITY


CITY OF JACKSONVILLE, FLORIDASCHEDULE OF SELF-INSURANCE FUNDTEN YEAR CLAIMS DEVELOPMENT INFORMATION (in thousands)

-262-

2006 2007 2008 2009 2010

$ 6,496 $ 6,980 $ 8,283 $ 7,310 $ 6,780666 855 510 2,404 1,529

$ 7,162 $ 7,835 $ 8,793 $ 9,714 $ 8,309

$ 1,648 $ 1,708 $ 1,911 $ 2,044 $ 2,087

$ 4,651 $ 4,365 $ 5,994 $ 4,794 $ 4,485

$ 1,093 $ 857 $ 1,495 $ 1,192 $ 1,0191,709 1,371 2,372 2,0822,294 1,822 3,3252,693 2,258 2,743

$ 4,651 $ 4,365 $ 5,994 $ 4,794 $ 4,4853,913 3,779 5,617 4,5953,627 2,857 5,1563,212 2,6362,950

$ (1,701) $ (1,729) $ (838) $ (199) $ 0

$ 7,162 $ 7,835 $ 8,793 $ 9,714 $ 8,309

(2,950) (2,636) (5,156) (4,595) (4,485)$ 4,212 $ 5,199 $ 3,637 $ 5,119 $ 3,824

Total Excess (Deficit) Funding of Reestimated Incurred Claims - 10 Years Shown. $ 40,043

continued


-263-


-264-

STATISTICAL SECTION This part of the City of Jacksonville’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Page(s) Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Net Assets by Components ......................................................................................... 268-269 Changes in Net Assets ................................................................................................ 270-273 Fund Balances, Governmental Funds .................................................................................274 Changes in Fund Balances, Governmental Funds ...................................................... 276-277

Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

Assessed Value and Estimated Actual Value of Taxable Property ............................ 280-281 Direct and Overlapping Property Tax Rates.......................................................................282 Principal Property Taxpayers...................................................................................... 284-285 Property Tax Levies and Collections.......................................................................... 286-287

Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Ratios of Outstanding Debt by Type to Personal Income and Per Capita .................. 290-292 Ratios of General Bonded Debt Outstanding to Actual Taxable Value of Property and Per Capita..............................................................................................294 Direct and Overlapping Governmental Activities Debt......................................................295 Legal Debt Margin Information..........................................................................................295 Pledged Revenue Coverage ........................................................................................ 296-301

Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Demographic and Economic Statistics ...............................................................................304 Principal Employers............................................................................................................305

Operating Information These schedules contain services and infrastructure data to help the reader understand how the information in the City’s financial report compares to the services the City provides and the activities it performs.

Full-time Equivalent City Government Employees by Function/Program.........................307 Operating Indicators by Function/Program ................................................................ 308-311 Capital Asset Statistics by Function/Program............................................................. 312-313

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB statement 34 in 2002; schedules presenting government-wide information includes information beginning in that year.

-265-


-266-

STATISTICAL SECTION – FINANCIAL TRENDS

-267-

CITY OF JACKSONVILLE, FLORIDANET ASSETS BY COMPONENTS (in thousands)LAST NINE FISCAL YEARS(accrual basis of accounting)

2010 2009 2008 2007Governmental Activities:

Invested in capital assets, net of related debt........... 974,561$ 953,289$ 1,000,539$ (3) 1,063,627$ Restricted ................................................................ 92,336 86,676 81,048 41,702Unrestricted............................................................. (207,729) (326,149) (390,777) (4) (259,189)

Total governmental Activities net assets 859,168 713,816 690,810 846,140

Business type ActivitiesInvested in capital assets, net of related debt........... 135,912 126,221 114,078 (3) 16,341 Restricted - - - 8,274Unrestricted............................................................. 14,586 19,035 24,060 (4) (105,181)

Total business type activities net assets 150,498 145,256 138,138 (80,566)

Primary GovernmentInvested in capital assets, net of related debt........... 1,110,473 1,079,510 1,114,617 1,079,968 Restricted ................................................................ 92,336 86,676 81,048 49,976Unrestricted............................................................. (193,143) (307,114) (366,717) (364,370)

Total primary government net assets .......................... 1,009,666$ 859,072$ 828,948$ 765,574$

Notes:Net assets were reallocated in 2002 and 2005 to adjust for the consideration of outstanding non-asset backed bonds.

(1) Retroactive infrastructure assets of $541,960 was not included in 2002 Governmental Activities and Total Primary Government Net Assets, but were recorded beginning 2003.

(2) Transferred capital assets for EverBank Field from an Enterprise Fund (Business Type activity) to General Government (Governmental Activities).

(3) The City transferred $404,898 of capital assets associated with the sports venues from Governmental Activities to Business Type Activities.

(4) The Pollution Remediation Liability of $162,710, previously considered a liability of Business Type Activities, was reclassified to a liability of Governmental Type Activities.

-268-

2006 2005 2004 2003 2002

900,373$ 786,614$ 725,464$ 529,265$ (2) (320,321)$ (1)

103,733 120,823 118,224 154,165 43,894(127,555) (163,353) (110,337) 22,856 287,606

876,551 744,084 733,351 706,286 11,179

13,375 13,742 12,289 14,258 (2) 234,802 13,045 15,497 13,591 12,714 11,929

(118,120) (104,700) 539 17,701 24,346

(91,700) (75,461) 26,419 44,673 271,077

913,748 800,356 737,753 543,523 (85,519) (1)

116,778 136,320 131,815 166,879 55,823(245,675) (268,053) (109,798) 40,557 311,952

784,851$ 668,623$ 759,770$ 750,959$ 282,256$

-269-

CITY OF JACKSONVILLE, FLORIDACHANGES IN NET ASSETS (in thousands)LAST NINE FISCAL YEARS(accrual basis of accounting)

2010 2009 2008 2007ExpensesGovernment Activities

General government............................................. 186,072$ 180,054$ 174,777$ 201,186$ Human services.................................................... 112,785 107,991 102,076 108,738Public safety......................................................... 549,369 527,227 511,009 472,531Culture and recreation.......................................... 75,451 71,091 67,054 93,197Transportation...................................................... 192,231 217,296 178,949 316,261Economic environment........................................ 71,082 72,571 77,460 77,440Physical environment........................................... 98,058 97,114 125,984 69,211Payments to component units.............................. - - - - Interest on long term debt.................................... 87,723 94,289 102,835 94,114

Total governmental activities expenses....................... 1,372,771 1,367,633 1,340,144 1,432,678 Business-type activities:

Parking system..................................................... 3,585 3,417 3,921 6,340 Sports complex..................................................... - - - - Motor vehicle inspections.................................... 476 433 462 482Storm Water Services........................................... 17,340 14,612 55 - Solid Waste.......................................................... 73,934 86,674 69,230 71,240Mayport Ferry...................................................... - - - 1,937EverBank Field.................................................... 24,485 20,361 11,850 11,732Veterans Memorial Arena ................................... 15,602 12,355 8,055 7,750Baseball Stadium ................................................. 3,335 1,993 1,297 1,135Performing Arts ................................................... 4,265 4,006 3,264 3,959Convention Center .............................................. 3,804 4,342 3,681 3,443Equestrian Center .. ............................................ 1,816 1,890 1,449 1,309

Total business type activities expenses...................... 148,642 150,083 103,264 109,327 Total primary government expenses........................... 1,521,413 1,517,716 1,443,408 1,542,005 Program Revenues Government Activities

Charges for services: General government.................................. 75,506 64,978 102,011 79,232 Public safety.............................................. 46,457 92,096 47,233 45,825 Other activities .......................................... 5,997 6,865 12,523 18,304

Operating grants and contributions ..................... 83,456 83,068 82,342 87,234 Capital grants and contributions ......................... 170,558 52,464 56,230 52,112

Total governmental activities program revenues 381,974 299,471 300,339 282,707 Business type activities:

Charges for services: Sports complex.......................................... - - - - Solid Waste................................................ 47,112 42,752 39,892 39,123EverBank Field.......................................... 3,719 3,536 4,106 3,534Veterans Memorial Arena......................... 4,797 4,704 5,520 5,979Other Activities......................................... 35,033 36,498 16,111 10,804

Operating grants and contributions ..................... - - - - Capital grants and contributions ......................... - - - -

Total business type activities revenue ........................ 90,661 87,490 65,629 59,440

Total primary government program revenues............. 472,635$ 386,961$ 365,968$ 342,147$

-270-

2006 2005 2004 2003 2002

194,406$ 160,341$ 191,705$ 168,844$ 112,505$ 106,755 107,588 100,120 101,974 95,609429,207 414,490 367,308 334,977 332,829

84,527 88,875 60,955 73,523 47,832216,674 236,998 129,734 299,785 91,594

74,030 83,832 74,889 77,375 81,61555,605 52,097 44,732 9,460 13,400

- - - - 58,58592,682 90,738 92,477 68,656 55,745

1,253,886 1,234,959 1,061,920 1,134,594 889,714

4,975 5,116 4,298 3,621 3,497 25,964 25,088 21,995 15,528 20,471

439 555 451 577 706- - - - -

92,935 83,506 77,588 69,098 65,3232,346 1,943 2,063 2,040 1,871

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

126,659 116,208 106,395 90,864 91,868 1,380,545 1,351,167 1,168,315 1,225,458 981,582

95,672 87,297 55,329 54,715 54,848 45,670 40,517 42,398 39,087 34,77911,491 7,357 10,313 10,313 5,866 69,485 89,784 83,649 85,013 86,83376,072 50,241 67,970 31,210 26,453

298,390 275,196 259,659 220,338 208,779

16,004 16,605 13,515 8,183 9,578 44,093 41,120 39,903 37,421 35,987

- - - - - - - - - -

5,570 4,441 4,335 4,335 4,448 - - 220 49 229- - - - 1,371

65,667 62,166 57,973 49,988 51,613

364,057$ 337,362$ 317,632$ 270,326$ 260,392$

-271-

CITY OF JACKSONVILLE, FLORIDACHANGES IN NET ASSETS (in thousands)LAST NINE FISCAL YEARS(accrual basis of accounting)

2010 2009 2008 2007Net (expense)revenue

Government activities .......................................... (990,797)$ (1,068,162)$ (1,039,805)$ (1,149,971)$ Business type activities ....................................... (57,981) (62,593) (37,635) (49,887)

Total primary government net expense (1,048,778) (1,130,755) (1,077,440) (1,199,858)

General revenues and other changesin net assetsGovernment Activities:

Property taxes....................................................... 493,171 474,381 477,368 465,918 Utility service taxes.............................................. 126,653 118,453 114,392 104,634Sales and tourist taxes.......................................... 158,062 162,295 179,645 181,621Intergovernmental - unrestricted.......................... 170,687 166,923 185,041 206,371 JEA contributions................................................. 99,188 96,961 96,096 92,915 Payment in lieu of taxes....................................... - - - - Unrestricted earnings on investments.................. 57,454 73,326 15,263 34,033 Franchise fees....................................................... 39,842 - - - Miscellaneous....................................................... 26,626 29,028 48,976 63,772

Special item - refunded state bonds............................. - - - - Transfers...................................................................... (35,534) (30,199) (232,306) (29,704) Total general revenues, special items, and transfers... 1,136,149 1,091,168 884,475 1,119,560

Business type activities

Intergovernmental ............................................... - - - -

Unrestricted earnings on investments.................. 5,770 8,237 2,516 6,165Sales and tourist taxes.......................................... 10,965 10,875 12,695 12,520Miscellaneous....................................................... 10,954 20,400 8,822 12,632

Special item - pollution remediation & settlement...... - - - - Transfers...................................................................... 35,534 30,199 232,306 29,704

Total business type activities....................................... 63,223 69,711 256,339 61,021

Total primary government .......................................... 1,199,372 1,160,879 1,140,814 1,180,581 Changes in net assets: Governmental activities .............................................. 145,352 23,006 (155,330) (30,411)Business type activities .............................................. 5,242 7,118 218,704 11,134 Total primary government .......................................... 150,594$ 30,124$ 63,374$ (19,277)$

Note: EverBank Field used to be Jacksonville Municipal Stadium

(continued)

-272-

2006 2005 2004 2003 2002

(955,496)$ (959,763)$ (802,261)$ (914,256)$ (680,935)$ (60,992) (54,042) (48,422) (40,876) (40,255)

(1,016,488) (1,013,805) (850,683) (955,132) (721,190)

408,942 365,456 343,870 327,388 312,551 104,259 99,463 95,629 95,976 93,978196,257 184,172 163,107 157,925 151,561228,237 202,510 190,917 163,551 156,593

89,188 85,938 83,188 78,496 76,606- - - 2,880 2,984

44,380 23,759 33,741 22,894 26,743- - - - -

52,912 43,610 26,771 28,109 20,275- - (79,218) - -

(36,212) (35,301) (25,723) 190,184 (27,215) 1,087,963 969,607 832,282 1,067,403 814,076

- - - - 117

4,765 3,368 2,594 2,729 2,787- - - - -

3,776 1,488 2,132 1,927 2,542- (87,995) - - -

36,212 35,301 25,723 (190,184) 27,215

44,753 (47,838) 30,449 (185,528) 32,661

1,132,716 921,769 862,731 84,798 293,053

132,467 9,844 30,021 153,147 133,141 (16,239) (101,880) (17,973) (226,404) (7,594)

116,228$ (92,036)$ 12,048$ (73,257)$ 125,547$

-273-

CITY OF JACKSONVILLE, FLORIDAFUND BALANCES OF GOVERNMENTAL FUNDS (in thousands)LAST THREE FISCAL YEARS(modified accrual basis of accounting)

2008 2007 2006 2005 2004 2003 2002General Fund

Reserved ........................................... 57,317$ 57,507$ 53,935$ 14,728$ 18,736$ 11,640$ 14,745$ Unreserved ....................................... 40,841 26,476 23,974 48,267 70,373 46,104 46,835

Total General Fund .................................... 98,158$ 83,983$ 77,909$ 62,995$ 89,109$ 57,744$ 61,580$

All other Governmental funds

Reserved ........................................... 312,341$ 393,177$ 388,723$ 448,536$ 696,431$ 542,300$ 490,181$ Unreserved, reported in:

Special revenue funds ................ 181,662 185,307 176,468 148,054 113,134 95,859 73,762Capital Projects funds ................ (24,510) (38,688) 17,731 48,064 1,127 106,756 140,785Permanent fund .......................... 195 194 188 178 176 174 170

Total all other governmental funds ...... 469,688$ 539,990$ 583,110$ 644,832$ 810,868$ 745,089$ 704,898$

2010 2009 2008General Fund

Non Spendable:Non Spendable............................ 6,604$ 6,259$ 4,300$

Spendable:Restricted.................................... - - - Committed.................................. 58,921 62,846 54,889Assigned..................................... 2,766 3,114 3,050Unassigned.................................. 41,774 37,962 35,919

Total General Fund ................................. 110,065$ 110,181$ 98,158$

All other Governmental fundsNon Spendable:

Non Spendable............................ 127$ 123$ 123$

Spendable:Restricted.................................... 329,146 221,416 155,333Committed.................................. 214,964 224,657 291,554Assigned..................................... 3,215 8,764 23,777Unassigned.................................. - (34,264) (1,099)

Total all other governmental funds ...... 547,452$ 420,696$ 469,688$

Note: Seven years of data available for GASB 34 compliance.

Two years of data available for GASB 54 compliance which was adopted in 2009.

2008 data was restated for GASB 54 comparable presentation.

Pre-GASB 54

Post-GASB 54

-274-


-275-

CITY OF JACKSONVILLE, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (in thousands)LAST NINE FISCAL YEARS(modified accrual basis of accounting)

2010 2009 2008 2007Revenue

Property taxes......................................................... 493,171$ 474,381$ 477,368$ 465,918$ Utility Service taxes................................................ 126,878 118,453 114,392 104,634Sales and tourist taxes............................................. 158,062 162,295 179,645 181,621Licenses and permits............................................... 47,894 46,774 27,356 8,867Intergovernmental................................................... 268,008 263,316 286,492 299,696Charges for services................................................ 112,563 112,013 128,570 128,391Fines and forfeitures............................................... 5,095 5,152 5,841 6,103JEA contribution..................................................... 99,188 96,688 94,188 91,438Payment in lieu of taxes.......................................... - - - 3,713Interest.................................................................... 48,495 62,593 15,346 31,101Other....................................................................... 27,996 29,031 47,443 63,772

Total Revenue........................................................ 1,387,350 1,370,696 1,376,641 1,385,254 Expenditures

General government................................................ 180,259 167,245 162,202 152,894 Human services....................................................... 112,792 107,309 100,858 107,651Public safety........................................................... 553,756 527,027 502,305 474,120Culture and recreation............................................. 67,352 64,076 59,096 72,993Transportation......................................................... 163,768 144,298 164,918 163,433Economic environment........................................... 70,626 66,713 72,433 76,991Physical environment............................................. 21,726 24,945 20,539 21,874Capital outlay.......................................................... 243,601 273,518 216,770 351,581Debt service:

Principal......................................................... 61,777 79,554 74,365 66,294Interest and fiscal charges.............................. 84,325 89,339 102,423 96,907Other - cost of issuance.................................. 8,536 2,846 1,607 1,759

Total Expenditures......................................................... 1,568,518 1,546,870 1,477,516 1,586,497 Excess of Revenue Over

(Under) Expenditures...................................... (181,168) (176,174) (100,875) (201,243) Other Financing Sources (Uses):

Long term debt issued............................................. 319,680 166,858 584,893 190,455 Refunding bond issued........................................... - 18,200 - - Premium on special obligation bonds payable....... 19,543 7,904 3,587 4,097 Discount on special obligation bonds payable........ - - - - Payment to escrow agent - refunded bonds............ - (18,622) (410,460) - Transfers in............................................................. 181,638 196,914 219,862 192,537Transfers out........................................................... (212,543) (232,049) (245,238) (222,892)

Total Other Financing Sources(Uses): 308,318 139,205 152,644 164,197 Special Item:

Payment to escrow agent - refunded state bonds.... - - - - Net Changes in Fund Balances 127,150$ (36,969)$ 51,769$ (37,046)$

Debt Service as Percentage of NonCapital

Expenditures 10.84% 12.75% 13.93% 11.54%

-276-

2006 2005 2004 2003 2002

408,942$ 365,456$ 343,870$ 327,388$ 312,551$ 104,259 99,463 95,629 95,976 93,978196,257 184,172 163,107 157,925 151,561

10,509 9,045 8,524 8,473 10,238314,959 302,213 297,639 264,146 250,752134,977 121,036 85,789 84,424 74,309

7,347 6,192 10,771 11,218 10,94688,688 85,938 83,188 78,496 76,606

- - - 2,880 2,98441,384 21,676 34,489 20,404 23,11852,912 43,609 26,771 28,109 20,275

1,360,234 1,238,800 1,149,777 1,079,439 1,027,318

136,815 139,092 117,428 109,494 102,169 105,979 107,104 100,212 99,206 94,375427,478 412,054 358,964 341,473 327,634

72,924 78,066 78,392 59,538 49,592148,107 141,195 130,473 118,073 128,928

72,270 78,323 68,675 74,242 78,24119,307 21,215 19,271 18,435 25,608

302,583 259,078 337,896 557,727 259,486

64,774 53,320 47,415 31,210 35,96095,365 93,074 79,183 59,445 52,675

1,085 1,773 4,033 7,935 4,415

1,446,687 1,384,294 1,341,942 1,476,778 1,159,083

(86,453) (145,494) (192,165) (397,339) (131,765)

114,170 18,319 371,775 620,496 341,910 - - - - -

1,693 - - 12,136 5,833 - - (2,778) - (1,409)

(41,457) (40,668) - (172,346) (123,854)214,270 208,115 232,249 185,557 168,233

(249,031) (232,209) (232,721) (211,895) (190,906) 39,645 (46,443) 368,525 433,948 199,807

- - (79,218) - -

(46,808)$ (191,937)$ 97,142$ 36,609$ 68,042$

12.72% 12.11% 12.41% 8.32% 9.73%

-277-


-278-

STATISTICAL SECTION – REVENUE CAPACITY

-279-

CITY OF JACKSONVILLE, FLORIDAASSESSED AND ESTIMATED ACTUAL VALUES OF TAXABLE PROPERTYLAST FOUR FISCAL YEARS (in thousands)

YearResidential Real

PropertyCommercial Real

Property

Industrial Real

Property Other Real Property

Personal Property

Centrally Assessed

Property (1)

2007 $ 31,686,651 $ 13,394,365 $ 3,199,698 $ 5,338,289 $ 7,899,162 $ 167,104

2008 36,941,849 15,093,348 3,777,631 6,643,841 8,305,449 177,308

2009 39,265,137 16,929,605 4,317,968 7,025,130 11,570,293 200,236

2010 44,839,547 18,085,667 4,507,151 7,994,713 12,081,891 197,806

(1) Centrally assessed property is primarily railroad property and private car line property, which must be separately assessed.

(2) Estimated actual values are the total "just" values or property subject to taxation, as defined by Section 193.011 of the Florida Statutes.

Note: * The information in the schedule is presented to conform with the requirements to GASB statement 44. Prior to the change in format, real assessed values were presented in aggregate. Additionally, all assessed value columns were presented net of tax exempt property. The City is not able to present data in the current format prior to 2007. Additionally information presented for 2007 and 2008 differfrom the original final tax roll due to subsequent Value Board Adjustment modifications.

Source: Property Appraiser's Office

Unaudited - see accompanying independent auditors' report.

Real Property

-280-

Less: Tax Exempt

PropertyTotal Taxable Assessed Value

Total Direct Tax Rate

Estimated ActualTaxable Values

(2)

Assessed as a Percentage of Actual Values

$ 14,055,282 $ 47,629,987 9.6400 $ 70,926,829 67.15%

15,713,214 55,226,212 8.4841 83,838,185 65.87%

23,804,210 55,504,160 8.4841 91,002,440 60.99%

34,507,969 53,198,806 9.2727 87,706,774 60.66%

(continued)

-281-

CITY OF JACKSONVILLE, FLORIDAPROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTSLAST TEN FISCAL YEARS (Per $1,000 of Assessed Value)

Overlapping RatesCity of Jacksonville Other Taxing Authorities

Debt Total Total Water FIND CombinedDistrict Operating Service City School Management Millage Millage

Year (Note 1) Millage Millage Millage Millage District Millage (Note 3) Total

2001 GSD (4) 10.5498 0.0225 10.5723 9.2580 0.4720 0.0410 20.3433

2002 GSD (4) 10.3465 0.0210 10.3675 8.8720 0.4620 0.0385 19.7400

2003 GSD (4) 10.1650 0.0192 10.1842 8.9200 0.4620 0.0385 19.6047

2004 GSD (4) 9.8398 0.0000 9.8398 9.0510 0.4620 0.0385 19.3913

2005 GSD (4) 9.6879 0.0000 9.6879 8.5650 0.4620 0.0385 18.7534

2006 GSD (4) 9.6500 0.0000 9.6500 8.4250 0.4620 0.0385 18.5755

2007 GSD (4) 9.6400 0.0000 9.6400 8.0420 0.4620 0.0385 18.1825

2008 GSD (4) 8.4841 0.0000 8.4841 7.7550 0.4158 0.0345 16.6894

2009 GSD (4) 8.4841 0.0000 8.4841 7.5610 0.4158 0.0345 16.4954

2010 GSD (4) 9.2727 0.0000 9.2727 7.5820 0.4158 0.0345 17.3050

(1) The GSD (General Services District) millage rate is a county-wide rate which applies to most taxpayers in the City of Jacksonville,Due to the existence of six other taxing districts, a total of seven combined millage rates apply to taxpayers in the City of Jacksonville. The two most prevalent millage rates are shown here.

(2) Beginning in 1981, as the result of a double-taxation suit settlement, the four independent Urban Services Districts withinDuval County began paying 18.8% less than the GSD millage rate, subject to a limit of 10.0000 mils plus debt service. Each of the four levies additional taxes for its own municipal services.

(3) Florida Inland Navigational District

Source: Property Appraiser's Office


-282-


-283-

CITY OF JACKSONVILLE, FLORIDAPRINCIPAL PROPERTY TAXPAYERSCURRENT AND NINE YEARS AGO

Taxpayer Type of Business Valuation Rank Percentage

AT&T/Bell South Communications ...................................... Communications $ 374,544,948 1 0.69%

Anheuser-Busch/Metal Container Corp ................................. Manufacturing 291,611,246 2 0.54%

FDG Properties/Flagler Development Company ................... Real Estate Mgmt/Development 276,741,224 3 0.51%

Wal-Mart Properties/Stores ................................................... Retail 248,838,655 4 0.46%

Stone Mountain Industrial Inc............................................... Distribution Center 213,358,359 7 0.39%

Vistakon/Johnson & Johnson Vision ..................................... Manufacturing 209,089,683 5 0.39%

Blue Cross & Blue Shield ...................................................... Insurance 201,204,345 6 0.37%

Beemer & Associates.............................................................. Real Estate Mgmt/Development 189,593,825 8 0.35%

St. Johns Town Center LLC ................................................... Retail 168,141,031 9 0.31%

Comcast Cable........................................................................ Communications 167,607,852 10 0.31%

AT&T/MediaOne/Continental Cablevision............................ Communications - - Bank of America..................................................................... Banking - -

Cedar Bay Generating Co. ..................................................... Utilities - -

Gran Central Corp................................................................... Real Estate Mgmt/Development - -

Liberty Property Limited Vision............................................. Real Estate Mgmt/Development - -

Gate Petroleum/Maritime/Lands............................................. Petroleum - -

Total Taxable Assessed Value of 10 Largest Taxpayers......... $ 2,340,731,168 4.31%

Total Taxable Assessed Value of Other Taxpayers ................ 51,946,369,647 95.69%Total Taxable Assessed Value of All Taxpayers .................... $ 54,287,100,815 100.00%

Note: Back in 2000 BellSouth and AT&T were separate companies. Since then AT&T bought out BellSouth to become one company. Source: Tax Collector's Office

2010

-284-

Valuation Rank Percentage

$ 434,470,896 1 1.08%

293,769,111 3 0.73%

- -

- -

- -

194,874,468 7 0.48%

183,171,779 9 0.45%

- -

- -

- -

333,986,872 2 0.83%266,935,601 4 0.66%

202,776,399 5 0.50%

199,321,586 6 0.49%

187,370,826 8 0.46%

152,203,156 10 0.38%

$ 2,448,880,694 6.06%

37,933,506,541 93.94%$ 40,382,387,235 100.00%

2001

(continued)

-285-

CITY OF JACKSONVILLE, FLORIDAPROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARS

Fiscal Year Taxes Levied

Ended for the PercentageSept. 30 Fiscal year (1) Amount of Levy

2001 General Fund - General Services District $ 303,152,394 $ 300,591,772 99.2%





2006 General Fund - General Services District (2) $ 410,959,779 $ 408,738,240 99.5%





(1) Tax levies are final certified amounts net of discounts allowed. The discount schedule is as follows:For taxes paid in: November - 4%

December - 3%January - 2%February - 1%

(2) Correction made to amounts previously reported to reflect taxes levied amount net of discounts.

Source: Tax Collector's Office

Collected within the Fiscal Year of the Levy

-286-

Collectionsin Subsequent Percentage

Years Amount of Levy

247,881$ $ 300,839,653 99.2%

180,573$ $ 314,041,959 98.9%

312,801$ $ 328,834,743 97.8%

524,414$ $ 345,320,746 99.1%

775,934$ $ 366,463,625 99.7%

1,333,338$ $ 410,071,578 99.8%

929,116$ $ 478,631,577 99.6%

1,728,233$ $ 480,756,561 100.1%

1,735,310$ $ 479,088,898 100.0%

-$ $ 494,770,794 99.4%


Total Collections to date

-287-


-288-

STATISTICAL SECTION – DEBT CAPACITY

-289-

CITY OF JACKSONVILLE, FLORIDARATIO OF OUTSTANDING DEBT BY TYPETO PERSONAL INCOME AND PER CAPITALAST TEN YEARS(dollars in thousands, except per capita)

General Revenue Bonds Notes Revenue BondsFiscal Obligation Payable from Payable from Payable fromYear Bonds General Fund General Fund BJP Revenues

2001 $ 1,195 $ 689,010 $ 13,025 $ 397,710 2002 605 881,440 11,165 395,395 2003 - 998,466 9,375 804,425 2004 - 1,035,101 8,980 1,093,855 2005 - 955,206 8,520 1,081,805 2006 - 985,840 7,995 1,064,210 2007 - 985,015 7,360 1,147,120 2008 - 779,533 6,630 1,090,568 2009 - 771,550 5,790 1,178,193 2010 - 826,574 4,845 1,256,964

Government Activities

-290-

Notes Notes and Bonds Capitalized Due toPayable from Commercial Payable from Lease ComponentBJP Revenues Paper Notes Internal Service Fund Obligations Units

- $ 60,000 - - $ 400 - 60,000 - $ 18,444 - - - - 19,455 - - - - 18,882 -

$ 18,319 - $ 58,565 991 - 15,920 - 72,205 144 - 57,426 - 72,205 952 - 66,414 - 153,730 609 - 60,719 - 156,643 313 - 65,872 - 250,713 - -

(continued)

Government Activities (continued)

-291-

CITY OF JACKSONVILLE, FLORIDARATIO OF OUTSTANDING DEBT BY TYPETO PERSONAL INCOME AND PER CAPITA (continued)LAST TEN YEARS(dollars in thousands, except per capita)

Capitalized TotalFiscal Revenue Lease Primary PerYear Bonds Obligations Government Capita (2)

2001 $ 79,670 $ 1,332 $ 1,242,342 5.44% $ 1,564.86 2002 79,670 - 1,446,719 6.12% 1,792.69 2003 76,234 - 1,907,955 7.70% 2,307.22 2004 72,109 - 2,228,927 8.45% 2,662.88 2005 67,990 - 2,191,396 7.91% 2,550.03 2006 63,465 - 2,209,779 7.60% 2,479.58 2007 57,560 - 2,327,638 7.62% 2,592.10 2008 357,124 - 2,454,608 7.96% 2,712.36 2009 341,887 - 2,515,095 7.72% 2,792.94 2010 326,143 - 2,731,111 8.11% 3,030.29

Business-Type Activities

Percentageof PersonalIncome (1)

-292-


-293-

CITY OF JACKSONVILLE, FLORIDARATIO OF GENERAL BONDED DEBT OUTSTANDINGTO ACTUAL TAXABLE VALUE OF PROPERTY AND PER CAPITALAST TEN YEARS

GeneralFiscal Obligation Redevelopment PerYear Bonds Bonds Total Capita (2)

2001 $ 1,755,000 - $ 1,755,000 n/a 2.21 2002 1,195,000 - 1,195,000 n/a 1.48 2003 605,000 - 605,000 n/a 0.73 2004 - - - n/a - 2005 - - - n/a - 2006 - - - n/a - 2007 - - - - - 2008 - - - - - 2009 - - - - - 2010 - - - - -

(1) Source: Property Appraiser's Office.

(2) Population figures are noted for Duval County as of April 1st of each year. Source: University of Florida, Bureau of Economic and Business Research

Property (1)

Percentage ofGeneral Bonded Debt Outstanding

Actual TaxableValue of

-294-

CITY OF JACKSONVILLE, FLORIDADIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBTas of September 30, 2010

EstimatedGovernmental Unit Net General Estimated Share of

Obligation Percentage OverlappingDebt Repaid with Property Taxes Bonds (1) Applicable (2) Debt

Duval County School Board - Bonds 21,850,000$ 100.000% 21,850,000$ Duval County School Board - Certificate of Participation 287,522,000$ 100.000% 287,522,000

Other Debt

None - - -

Subtotal, Overlapping Debt 309,372,000$

City Direct Debt 2,731,111,076

Total Direct and Overlapping Debt 3,040,483,076$

(1) The net general obligation debt outstanding includes debt which is secured by the District to levy taxes on real estate less amounts available in debt service funds.

(2) The applicable percentage is based on the District's geographical boundaries within Duval County.

Source: Duval County Public Schools - Business Services

CITY OF JACKSONVILLE, FLORIDALEGAL DEBT MARGIN INFORMATIONas of September 30, 2010

The amount of debt the City of Jacksonville can issue is not limited by either the City of Jacksonville charter or code, nor the Florida State Statutes.

-295-

CITY OF JACKSONVILLE, FLORIDAPLEDGED REVENUE COVERAGELAST TEN YEARS(dollars in thousands)

Utility Occupational GrossFiscal Service Fuel Oil License AvailableYear Taxes Taxes Taxes Revenues Principal Interest Coverage

2001 $ 78,486 $ 287 $ 6,910 $ 85,683 $ 17,860 $ 16,248 2.51 x2002 87,710 164 7,089 94,964 19,155 14,586 2.81 x2003 89,604 163 7,493 97,260 16,845 16,185 2.94 x2004 89,364 107 7,320 96,791 23,080 17,072 2.41 x2005 92,848 113 8,143 101,104 26,120 17,320 2.33 x2006 97,284 229 8,809 106,322 28,570 17,388 2.31 x2007 97,833 92 7,618 105,543 31,205 21,578 2.00 x2008 107,531 71 7,932 115,533 32,930 21,100 2.14 x2009 111,634 90 7,928 119,652 26,435 19,846 2.59 x2010 120,333 24 7,867 128,224 21,616 21,463 2.98 x

Debt Service

Excise Tax Revenue Bonds

-296-

Sports Sports FacilityCommunication Facility Convention Tourist Gross

Franchise Services Sales Tax Development Development AvailableFees Taxes Rebate Tax (2%) Tax (2%) Revenues Principal Interest Coverage

$ 7,846 - $ 1,833 $ 3,475 $ 3,738 $ 16,892 $ 725 $ 6,073 2.48 x2,763 $ 6,104 2,000 3,524 3,780 18,171 1,360 6,024 2.46 x

926 6,209 2,000 3,611 3,895 16,641 1,475 9,189 1.56 x1,152 6,158 2,000 3,847 4,155 17,311 1,610 11,642 1.31 x1,276 6,502 2,000 4,800 5,108 19,686 1,750 10,441 1.61 x1,710 6,746 2,000 5,201 5,530 21,187 2,215 8,530 1.97 x1,335 6,709 2,000 5,118 5,402 20,565 3,675 7,733 1.80 x1,132 6,790 2,000 5,197 5,498 20,618 3,775 7,631 1.81 x1,349 6,726 2,000 4,366 4,675 19,117 4,005 7,453 1.67 x1,351 6,522 2,000 4,238 4,561 18,672 4,140 7,317 1.63 x

(continued)

Capital Improvement Revenue Bonds

Debt Service

-297-


JEA JEAContribution - Contribution - Gross

Fiscal Electric Water and AvailableYear Serices Sewer Revenues Principal Interest Coverage

2001 $ 62,590 $ 11,049 $ 73,638 $ 725 $ 6,073 10.83 x2002 65,490 11,117 76,606 1,955 1,062 25.39 x2003 67,039 11,457 78,496 2,000 783 28.21 x2004 70,039 13,148 83,188 2,055 903 28.12 x2005 68,677 17,261 85,938 2,205 2,875 16.92 x2006 71,031 17,657 88,688 2,265 4,478 13.15 x2007 73,100 18,337 91,438 2,430 5,103 12.14 x2008 73,847 20,341 94,188 2,495 4,262 13.94 x2009 76,094 20,593 96,688 2,680 1,581 22.69 x2010 79,008 20,180 99,188 2,810 474 30.20 x

(continued)

Capital Project Revenue Bonds

Debt Service

-298-

County City GrossRevenue Revenue AvailableSharing Sharing Revenues Principal Interest Coverage

$ 1,999 $ 5,826 $ 7,825 $ 3,810 $ 3,716 1.04 x1,999 5,826 7,825 3,990 3,538 1.04 x1,999 5,826 7,825 - 4,058 1.93 x1,999 5,826 7,825 2,000 5,421 1.05 x1,999 5,826 7,825 2,060 5,360 1.05 x1,999 5,826 7,825 2,120 5,298 1.05 x1,999 5,826 7,825 2,185 5,233 1.05 x1,999 5,826 7,825 2,250 5,165 1.05 x1,999 5,826 7,825 2,400 5,049 1.05 x1,999 5,826 7,825 2,485 4,965 1.05 x

(continued)

Debt Service

Guaranteed Entitlement Bonds

-299-


LocalGovernment

Fiscal 1/2 Cent InfrastructureYear Sales Tax Principal Interest Coverage Sales Tax Principal Interest Coverage

2001 $ 67,487 $ 4,985 $ 10,609 4.33 x $ 38,496 2002 71,689 5,325 8,374 5.23 x 55,324 $ 2,315 $ 9,994 4.49 x2003 73,677 5,680 7,985 5.18 x 57,971 3,310 10,822 4.10 x2004 76,155 8,675 8,923 4.33 x 60,132 6,020 21,269 2.20 x2005 81,355 8,675 8,517 4.73 x 69,337 7,865 29,042 1.88 x2006 86,763 9,085 8,114 5.04 x 73,227 13,310 28,071 1.77 x2007 83,940 9,480 7,748 4.87 x 70,665 15,799 28,011 1.61 x2008 77,529 9,815 7,351 4.52 x 70,262 19,844 27,948 1.47 x2009 70,510 10,660 6,735 4.05 x 63,330 22,474 33,515 1.13 x2010 67,642 11,080 6,316 3.89 x 61,322 23,591 32,381 1.10 x

Better Jacksonville Infrastructure Sales Tax Bonds

Debt Service

(continued)

Debt Service

Local Government Sales Tax Revenue Bonds

-300-

Gas Tax GrossTransportation (Constitutional Available

Sales Tax Fuel Tax) Revenues Principal Interest Coverage

$ 57,496 $ 8,475 $ 65,972 - - 57,471 8,174 65,646 - $ 8,153 8.05 x60,379 8,447 68,826 $ 110 8,971 7.58 x61,650 8,861 70,511 3,580 12,492 4.39 x71,717 9,280 80,997 4,185 18,148 3.63 x76,136 9,280 85,416 6,684 22,039 2.97 x73,543 9,235 82,779 4,495 23,283 2.98 x72,339 8,856 81,195 2,595 24,408 3.01 x65,132 8,693 73,825 7,495 21,054 2.59 x62,868 8,549 71,417 7,705 17,730 2.81 x

(continued)

Transportation Revenue Bonds (Better Jax)

Debt Service

-301-


-302-

STATISTICAL SECTION – DEMOGRAPHIC AND ECONOMIC INFORMATION

-303-

CITY OF JACKSONVILLE, FLORIDADEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN FISCAL YEARS

Fiscal Year Population (1)

Total Personal Income (thousands)

(1)

Per Capita Personal

Income (1)Median

Age (1)

Education level in Years of

Schooling (2)School

Enrollment (3)Unemployment

rate (4)

2001 793,898 22,828,124$ 28,879$ 34.1 N/A 126,919 4.2%2002 807,012 23,651,670$ 29,498$ 34.2 13.01 128,118 5.7%2003 826,951 24,788,824$ 30,546$ 34.6 13.16 129,553 5.5%2004 837,037 26,371,290$ 32,175$ 35.0 13.22 127,469 5.2%2005 859,361 27,689,855$ 32,221$ 35.4 13.26 126,535 4.2%2006 891,192 29,074,347$ 32,624$ 35.5 13.35 125,171 3.0%2007 897,974 30,528,064$ 33,997$ 36.1 13.16 125,063 3.9%2008 904,971 30,844,161$ 34,022$ 35.3 13.25 125,403 6.4%2009 900,518 32,575,928$ 36,175$ 35.5 13.32 123,716 10.5%2010 901,271 33,675,423$ 37,364$ 35.8 14.74 124,044 11.6%

Source: (1)(2)(3) Duval County Public Schools, Budget Department(4)

Notes: N/A = Statistical information is not available2005 - 2009 population, total personal income, per capita personal income, and education level are estimates.2009 educational attainment source is 2009 Decision Data 2009, Discover Jacksonville

U.S. Census BureauOffice of Economic and Demographic Research

U.S. Department of Labor - Bureau of Labor Statistics

-

-304-

CITY OF JACKSONVILLE, FLORIDAPRINCIPAL EMPLOYERSCURRENT YEAR

EMPLOYER Employees Rank

% of Total City

Employment

Naval Air Station Jacksonville 25,245 1 3.68%Duval County Public Schools 14,489 2 2.11%Naval Air Station Mayport 12,677 3 1.85%City of Jacksonville 8,828 4 1.29%Baptist Health 8,276 5 1.21%Blue Cross & Blue Shield 6,000 6 0.87%Mayo Clinic 4,978 7 0.73%CitiBank (Citi-Cards) 4,863 8 0.71%United Parcel Service 4,100 9 0.60%St. Vincent's Medical Care 4,000 10 0.58%

Total 93,456 13.63%

Notes: (1) Information current as of June 2010

(2) Prior year information from nine years ago is not available.

Source: Jacksonville Cornerstone Regional Development Partnership

2010

-305-

STATISTICAL SECTION – OPERATING INFORMATION

-306-

CITY OF JACKSONVILLE, FLORIDAFULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEESBY FUNCTION/PROGRAMLAST 10 YEARS

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

Function/Program

General Government ................... 1,665 1,752 1,681 1,493 1,545 1,451 1,608 1,575 1,596 1,554

Human Services .......................... 172 173 207 376 421 275 283 256 207 201

Public Safety ............................... 4,728 4,564 4,467 4,493 4,522 4,505 4,093 4,069 3,953 3,897

Culture and Recreation ................ 452 444 562 769 809 706 693 556 482 452

Transportation ............................. 493 518 518 421 445 478 471 470 472 466

Economic Environment ............... 180 191 32 77 97 104 96 94 94 91

Physical Environment ................. 155 157 231 156 161 137 133 124 122 151

Parking System ........................... 51 51 51 44 47 31 32 76 29 29

Motor Vehicle Inspection ............ 14 14 12 9 9 10 9 11 12 11

Solid Waste ................................. 132 150 153 170 203 160 163 163 162 175

Total 8,042 8,014 7,914 8,008 8,259 7,857 7,581 7,394 7,129 7,027

Source: City of Jacksonville Annual Financial Plan

Note: Number of positions based on approved budget

Full-time Equivalent Employees as of September 30

-307-

CITY OF JACKSONVILLE, FLORIDAOPERATING INDICATORS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS

2010 2009 2008 2007 2006 2005Function/ProgramPolice

Average daily police calls for service .................... 4,138 4,289 5,045 4,738 4,605 4,660Traffic citations issued ........................................... 128,152 154,806 216,644 220,569 208,825 208,292Total sworn officers ............................................... 1,790 1,751 1,704 1,665 1,591 1,609Total civilians ........................................................ 1,637 1,552 1,348 1,335 1,236 1,125Average daily population by institution:

John E Goode Pretrial Detention Facility ......... 2,825 2,692 2,578 2,536 2,322 2,247James I. Montgomery Correctional Center ...... 620 659 677 718 747 744Community Corrections Division .................... 313 295 297 314 312 337

Fire/Rescue Fire incidents .......................................................... 18,991 19,251 21,667 20,835 19,604 19,336Rescue incidents ..................................................... 92,287 90,851 92,150 92,875 89,260 88,041Rescue transports .................................................... 59,527 53,700 51,013 49,340 45,110 44,533Fire /Rescue Communication(9-1-1) No. of calls for emergency assistance .............. 115,204 110,102 113,817 113,710 108,864 107,377Fire prevention

No. of inspections ............................................. 7,329 5,717 8,406 8,411 10,351 14,106No. of public education participants ................. 56,312 75,655 70,388 46,195 48,722 35,278

Solid Waste Refuse collections (tons per day) ........................... 2,324 2,360 2,591 2,731 3,173 3,252Recyclables collected(tons per day) ....................... 433 452 505 490 493 586

Motor Vehicle Number of vehicles inspected ................................ 10,274 10,607 10,929 10,895 11,196 11,229

Animal Care and Control Complaints received ............................................... 30,112 24,849 16,138 16,491 34,398 32,520Animals impounded ............................................... 19,877 25,377 25,368 26,642 25,870 20,497License tags dispensed ........................................... 24,087 86,236 65,318 65,369 64,648 89,646

Housing Community Development Block Grant(CDBG)

Limited Repair Program ................................... 44 30 44 55 53 37Utility top-in Program ...................................... 103 37 88 78 81 96Façade program ................................................ N/A 3 3 6 20 10

Home Ownership Made Easy(HOME) Head Start Homeownership .............................. 136 160 105 111 46 78Home-American Dream ................................... N/A 2 27 6 33 36Elderly Relocation/New Construction .............. N/A N/A 1 4 4 4

State Housing Initiative Partnership(SHIP) Home Owner Rehabilitation ............................. 67 62 28 6 26 156

Source: City of Jacksonville Annual Financial plan Various City Departments

Notes: N/A=Statistical Information is not available

FISCAL YEAR

-308-

2004 2003 2002 2001

4,450 4,208 4,277 3,964212,726 234,591 240,364 248,001

1,622 1,622 1,584 1,5791,175 1,118 1,107 1,095

2,206 2,139 1,986 1,955698 602 548 570306 333 313 294

22,538 18,221 19,607 20,19883,841 78,649 75,332 72,64842,280 38,635 36,834 35,484

106,379 96,870 94,939 92,844

12,457 7,459 N/A N/A26,421 15,221 N/A N/A

3,046 2,849 2,015 2,693

568 490 348 476

10,430 13,872 17,703 17,970

30,987 36,523 26,011 19,89217,586 18,518 17,422 20,00072,354 97,258 87,614 74,100

44 55 66 77N/A N/A N/A 88

8 13 18 19

174 165 144 183N/A N/A N/A N/A

1 N/A 1 N/A

310 17 27 35

FISCAL YEAR

-309-

CITY OF JACKSONVILLE, FLORIDAOPERATING INDICATORS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS (continued)

2010 2009 2008 2007 2006 2005Function/ProgramParks and Recreations

Pool Attendance ..................................................... 435,211 653,606 411,354 428,403 466,321 462,817Camp Attendance ................................................... 1,959 2,323 2,082 5,094 4,956 5,013Swimming lessons (children) ................................. 3,607 5,588 4,444 5,529 4,458 4,447Permits issued(Athletic, special use, picnic) .......... 3,289 3,028 1,696 1,912 3,322 1,694Cecil Attendance .................................................... 428,929 331,691 269,046 264,833 211,320 173,144Athletic volunteers total hours of service ............... 728,006 776,570 1,081,745 912,550 1,082,695 668,260

Jacksonville Children's Commission Early Learning Coalition-Child Care Service ........ 12,559 12,507 12,844 13,018 13,547 13,394Team UP Programs ................................................ 7,413 6,701 4,722 4,129 3,987 5,267Community Based After School Programs ............ 2,144 2,440 2,507 2,409 2,365 2,596Healthy Kids and Kidcare* .................................... 47 24 24 7,430 7,042 10,931Summer Camperships ............................................ 5,830 5,979 3,524 4,083 4,972 6,861Summer Lunch Program

Lunches served daily ........................................ 285,924 308,900 340,838 340,213 323,571 289,627Snacks served daily .......................................... 254,490 264,935 299,416 275,421 272,656 233,040Number of Sites ................................................ 173 185 201 157 175 157Number of days served ..................................... 44 49 49 57 47 43

After School Food ProgramSnacks served annually 248,061 457,503 430,843 358,622 409,704 452,544Suppers served annually 574,811 382,932 293,810 302,231 313,087 369,431Number of sites 42 42 28 24 24 24

Early Literacy Mayor Peyton Book Club ................................. 10,180 9,766 9,604 8,818 8,399 8,365Others ............................................................... 5,502 5,856 5,531 6,800 7,851 5,329

Workforce Development Training Institute ........... 5,745 4,388 3,713 1,500 1,142 2,718Library

Programs ................................................................. 10,694 12,628 11,194 11,417 9,243 6,874Gate count .............................................................. 5,029,115 5,257,939 4,829,892 4,703,234 4,365,463 3,768,611Circulation .............................................................. 9,087,192 9,156,597 8,824,972 8,378,103 7,948,860 6,145,880

Source: City of Jacksonville Annual Financial planVarious City Departments


*Healthy Kids and kidcare stat as of June 30th.

FISCAL YEAR

-310-

2004 2003 2002 2001

592,622 615,392 500,229 493,1316,487 5,998 5,716 N/A4,687 4,129 4,054 4,558

189 N/A N/A N/A164,603 N/A N/A N/A469,872 N/A N/A N/A

13,881 15,649 13,113 9,3505,002 4,300 5,128 2,4182,142 2,649 7,201 21,744

14,435 13,635 11,396 9,0076,216 5,430 7,832 4,916

447,238 468,019 481,259 482,570381,061 407,918 422,129 438,851

231 236 239 23246 44 40 44

N/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/A

4,000 N/A N/A N/A1,000 N/A N/A N/A3,699 2,600 N/A N/A

4,827 4,824 3,024 3,0243,461,025 3,102,184 2,885,356 2,542,5115,460,107 5,212,422 4,773,855 4,315,518

FISCAL YEAR

-311-

CITY OF JACKSONVILLE, FLORIDACAPITAL ASSET STATISTICS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS

2010 2009 2008 2007 2006 2005Function/ProgramPolice

Vehicular Patrol unitsPatrol Cars ................................................... 1,290 1,133 1,468 1,468 1,418 1,418Motorcycles ................................................. 21 22 20 16 16 16Other Vehicles ............................................. 343 411 164 160 160 222Unmarked .................................................... 480 412 285 255 255 255Horse Patrol ................................................ 5 6 6 6 6 6

Fire Protection Stations ........................................................... 53 53 52 50 52 50Marine Based stations ..................................... 2 2 2 2 2 2Rescue Units .................................................. 34 32 31 31 30 30

Parks and RecreationBoat ramps ..................................................... 22 22 22 32 32 29Community Center ......................................... 65 65 65 53 53 53Softball and Baseball Diamonds .................... 226 214 210 280 287 277Swimming pools ............................................. 35 35 35 36 36 35Tennis Courts ................................................. 161 161 156 158 156 158Soccer Fields .................................................. 68 68 68 84 78 76

StreetMiles of the street ........................................... 3,626 3,620 3,603 3,570 3,534 3,489Street - paved (miles) ...................................... 3,622 3,616 3,599 3,566 3,530 3,485Street - unpaved (miles) .................................. 4 4 4 4 4 4Street maintained primary (miles) .................. 386 372 372 372 372 371Interstate (miles) ............................................. 95 95 95 115 95 95

ParkingDowntown parking garages capacity .............. 2,636 2,636 2,576 2,576 2,280 2,280Downtown parking lots capacity .................... 1,205 1,205 1,262 1,262 1,530 1,530On street meters .............................................. 1,448 1,448 1,450 1,500 1,600 1,600

Solid WasteNo. of city landfills in operation ..................... 1 1 1 1 1 1No. of city yard waste recycling ..................... 1 1 1 1 2 2

Community ServicesSenior Citizen Centers .................................... 18 18 18 18 18 18Passenger busses ............................................. 26 26 26 26 26 26

LibraryFacilities ......................................................... 21 21 21 21 21 20Square footage ................................................ 785,046 785,046 785,046 785,046 785,046 785,046No. of items held(books, DVD's, CD's, etc) ... 3,023,307 3,147,971 3,113,359 3,071,780 2,856,089 2,682,984

Source: City of Jacksonville Annual Financial planVarious City Departments


Fiscal Year

-312-

2004 2003 2002 2001

1,208 1,164 1,144 1,12216 16 17 17

241 184 178 150345 381 352 357

6 6 7 7

50 47 47 472 2 2 2

24 24 17 21

21 21 23 2330 30 30 30

267 267 209 20933 33 33 33

149 149 127 12757 57 27 27

3,449 3,403 3,403 3,3513,445 3,396 3,396 3,347

4 7 7 4371 373 373 363

95 95 95 95

2,240 2,240 2,330 2,3301,554 1,554 1,830 1,8301,546 1,506 1,750 1,750

1 1 1 12 2 2 2

19 21 21 2124 24 23 24

18 14 14 14417,061 362,061 356,721 356,721

3,057,024 2,407,711 2,386,165 2,325,780

Fiscal Year

-313-


-314-

-315-

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010CITY OF JACKSONVILLE, FLORIDA

-316-

Documents

2010-CAFR-sec